Someone has to decide when opinions differ. Hierarchy is the ranking of authority and status within an organization so that each level has defined superiority over the levels below it.

Hierarchies coordinate complex work by assigning decision rights and accountability. Tall hierarchies create many layers and narrow spans; flat hierarchies do the opposite. Both forms solve some problems and create others. Formal hierarchy rarely matches informal influence perfectly.

Excessive hierarchy slows decisions and filters information; insufficient hierarchy produces ambiguity and conflict. Periodic redesign aims to keep hierarchical depth matched to the complexity and pace the organization faces.

• Ranked system of authority and status
• Assigns decision rights and accountability
• Varies from tall to flat structures
• Needs periodic adjustment to stay effective