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7 Pitfalls of Hierarchical Business Models

If your company still relies on the classic pyramid hierarchy, you’re probably feeling the strain: slow decisions, bottlenecks, disengaged teams, and outdated structures that can’t keep up with today’s complexity. In this video, I break down the 7 big pitfalls of traditional hierarchical business models—and share what you can adopt instead to build a more adaptive, human-centred, and purpose-driven organisation. Hi, I’m Lizzie 👋 I’ve spent the last 7 years helping founders and their teams rethink the way they work so they can create more impact with less friction. On this channel, I explore new ways of working, decentralised team structures, culture design, and practical tools you can use to reinvent your organisation. In this video, I cover: 🔹 Why the pyramid hierarchy is an outdated industrial-era design 🔹 How centralised decision-making slows teams down 🔹 Why adding more managers often creates more silos 🔹 The hidden organisational debt created by bureaucracy 🔹 How authority bias kills creativity and innovation 🔹 Why competition thrives over collaboration in ladder-based systems 🔹 How rigid job titles limit your team’s true potential 🔹 AND what you can explore instead—dynamic governance, distributed decision-making, and structures built around purpose (not power) ⌚️TIME STAMPS ⌚️ 0:00 Intro 01:04 A short history lesson 05:15 Pitfall 1 - It's not built for complexity 05:24 Pitfall 2 - Slow and poor decision making 08:33 Pitfall 3 - Competition over collaboration 09:52 Pitfall 4 - Lack of creativity and innovation 11:38 Pitfall 5 - Bureaucracy 13:50 Pitfall 6 - Poor communication 14:35 Pitfall 7 - Leaving talent on the table 15:44 The pitfalls of organisational hierarchy 16:02 The alternative RESOURCES MENTIONED 🔗 VIDEO 🍿 Where Hierarchy Came From - What is Politics    • 10. David Graeber & David Wengrow "The Daw...   BOOKS 📚 📙 Teal Dots in an Orange World https://amzn.to/4rj0eTC 📘 Brave New Work by Aaron Dignan https://amzn.to/43QeSI1 📕 Maverick by Ricardo Semler https://amzn.to/3LVsfRc 📘 Reinventing Organisations by Frederic Laloux https://amzn.to/4ifUWnQ ARTICLE 📰 Don't Let Hierarchy Stifle Innovation https://hbr.org/2022/08/dont-let-hier... PODCAST 🎙️ Leadermophosis by Lisa Gill and Tuff Leadership Training https://open.spotify.com/show/5c8jdlx... Make it Thrive - Maverick Founders Season https://open.spotify.com/show/7zHSGAl... BOOK A POWER HOUR WITH ME 🤓 https://calendar.google.com/calendar/... Sign-up to my monthly Culture Fix email newsletter 💌 https://libertymind.co.uk/email-newsl...