Scott Galloway argues against using AI to flatten corporate hierarchies, asserting that middle management plays a crucial role in filtering leadership errors and translating strategy.
I just saw this video and had to share it … classic cut through by Scott Galloway … agree or disagree? #readbetweenthelines Scott assesses that following a discussion with Jack Dorsey, now at Square … that the risk is that organisations see AI as a reason and opportunity to flatten the organisation structure and have less layers from the front line to the CEO. Scott thinks organisations with this approach will have problems in the future as the “layers” or “middle management” are key to absorb and re-interpret the goals and wishes of the top leadership as a number of times the top leadership get it wrong. So having the middle layers helps the organisation respond and not derail the performance and impact. A fascinating topic and impact on the future
TL;DR: Scott Galloway argues that the push to flatten organizational hierarchies using AI is misguided, as middle management serves a critical function in absorbing leadership errors and translating strategic goals.
## The Vision of a Flat Organization
The discussion centers on a conversation between Scott Galloway and Jack Dorsey regarding the impact of artificial intelligence on corporate structure. Dorsey, referring to his time at Square (now Block), defined organizational progress by the "depth of hierarchy" between himself and any individual employee. He noted that the maximum depth at the time was approximately five layers.
Dorsey expressed a desire to compress this depth significantly within the year, aiming for just two or three layers. His ultimate vision was a completely flat organization where no hierarchical layers exist, and every employee reports directly to the CEO. In this model, AI serves as the tool to facilitate this structure, eliminating the need for middle management by assisting and empowering direct communication and task execution between frontline workers and the CEO.
## The Role of Middle Management
Scott Galloway critiques this vision by highlighting the practical realities of organizational leadership. He references Dorsey’s history of unconventional views, such as his tweet claiming "Bitcoin will save humanity," to contextualize Dorsey’s idealistic approach to corporate structure.
Galloway shares a personal anecdote to illustrate the limitations of the "no-reporting" ideal. He admitted to fantasizing about a scenario where no one reported to him directly. However, realizing the impracticality of this approach, he hired a manager. This experience led him to conclude that the dream of a perfectly flat organization is often a狂热梦想 (fanatical dream) driven by the belief that AI will render middle management obsolete.
## The Protective Function of Layers
Galloway’s central argument is that executives often view middle management as redundant when proposing cuts, believing these roles can be eliminated through AI efficiency. However, he posits that this perspective overlooks the true value of these "layers."
According to Galloway, middle management is essential because it acts as a buffer and a filter. Their primary role is to "absorb the chaos created by their incompetent leadership." Top leadership frequently makes errors in strategy or goal-setting. Middle managers serve to reinterpret these goals, shielding the frontline from direct exposure to leadership missteps. Without these layers, organizations risk derailing their performance and impact because the friction and error-correction mechanisms provided by middle management are removed. Galloway suggests that organizations attempting to flatten their structure in this manner will likely encounter significant problems in the future.
Source: [Bright_Inside7949 - AI will impact one job role more than any other](https://youtube.com/shorts/WZdya2lPlbU?si=s2RvAb6TE_Kd8QQR)
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