[slee029]

While I completely agree that flat vs a vertical hierarchy should be assessed from organization to organization, I tend to prefer flat structures mainly because they allow for the culture to mold perception of progression over an existing structure itself. What I mean by this is that if you have a structured way for internal progression (usually vertical) people mold their perceptions around that ladder no matter how much you try convincing them otherwise.

You can clearly see this being played out within the big 4 accounting firms (I recruited for them and from them). Within the firms its extremely vertical in that progression is dictated largely by how long you stayed until you hit partnership where its strictly vacancy. Thus, you're basically looking at steady yearly promotions until you reach being a senior manager after 6-8 years within the firm.

This is where I was able to take the most senior people usually in a seasonal manner pretty easily. This is because after being a senior manager you really have only two trajectories within the firm, associate partner or partner. The AP is basically a position they created to please senior managers who sounded too old and weren't good enough to be partners. So what you generally see is 3-4 hotshot senior managers all vying for the 1 partnership position that will be available that season/year. Inevitably I'll have 3/4 partner potential senior managers leaving because they know they're better off leaving the firm and going to an industry position or worse a competitive firm. They already know the stigma of being an AP.

Thus, you don't simply see attrition at the top level, but the attrition of the very best at the top level and the rest being APs. What's worse is those guys who are the best usually have a loyal following within the firm. Well guess who gives me a call after placing that senior manager as a hiring manager where they're building a team? Now you see an attrition of even better people who you were probably underpaying at junior positions leaving the firm for better pay and better hours. The only guiding light there is you're hoping that senior manager becomes their client in the future.

Thus, you see a system where the highly vertical nature of the structure led to a culture where attrition was the norm. While it might be naive to think so, I think being a flat structure might give a better chance for the culture to shape that perception of the promotion and have them "feel" it rather than perceive it.