What is the relationship between two people who are required to work together? Organizational structure is the way we define that working relationship with respect to accountability and authority. And, there are two types. One vertical and one horizontal.

Vertical relationships, we understand pretty easily. These are managerial relationships, with a manager and a team member. Between the two, accountability and authority are assumptive. The manager has the authority to determine what work needs to be done, how that work is done, how its output will be measured (pace and quality). The manager has the authority to make decisions and solve problems, simultaneous with the accountability for that output.

This is not a power dynamic based on a power hierarchy. This is a competence dynamic based on a competence hierarchy. It is the intelligent manager, with the authority to make decisions, who has the accountability to determine all the variables around that decision. That includes data collection, asking questions and listening to feedback from the team. Woe is the manager who fails to consider these variables in the face of a decision. For it is the manager who will be held to account for the consequences of that decision.

That’s how competence hierarchies work.