The global economy is forcing companies and corporations to consider new organizational structures. The old hierarchical structure is too slow and unresponsive in the new marketplace. The lattice organizational structure is evolving as a possible replacement to the old hierarchical structure.
The lattice organization structure is a flat organization with no traditional hierarchy. Work is done in self-directed and self-managed work teams where each team is responsible for specific corporation functions. Teams are self-directed; no traditional boss is required or needed.
Lattice organizations and teams manage themselves through a sense of mutual benefit, responsibility and common purpose. Leaders gain authority based on demonstrated knowledge, skills, experience and natural leadership ability.
According to Deloitte Development LLC, "in contrast to the more limited options provided by the corporate ladder, the corporate lattice makes it possible for employees to customize careers to the benefit of both the individual and the company." This workplace customization and flexibility creates a happier, more productive workforce and companies can hold on to top talent.
Lattice organizations are best created from the start as opposed to a traditional hierarchical organization transforming into lattice or network configuration. However, due to global competition and the need to react quickly to change, traditional companies are taking advantage of some lattice attributes such as assigning self-managed work teams to address and solves immediate problems.