Departmentalization and structured hierarchies have some value in organizational effectiveness, but when poorly managed—and particularly when not properly optimized—could hinder organizational change and leadership. It really is not about the departmentalization or structured hierarchies per se, but about the problem associated with systems centrism—
the likelihood of staff members or executive leaders being constrained, if you like, compartmentalized, in perspectives and outlook as defined by their levels or locations in the organization.
It would be difficult to foster attitudes, attributes, and core values of high-performing organizational leadership and change in organizational systems and environment where staff members or executive leaders do not interact with others in other locations, functions or structured hierarchies outside their own—or are not given the opportunities to engage and challenge perspectives and dispositions prevailing in their levels in the organizational hierarchy with a fresh pair of eyes.
Deliberate cultivation and promotion of an organizational culture and environment where productive and sustained engagement—cross-organizational, vertical, and horizontal—thrives, would stymie the problem of systems centrism. This speaks to the importance of periodic organizational cultural assessment, review and optimization for sustaining organizational leadership and culture, managing change in organizations, and managing high performing teams for desired results. Conducting regular leadership workouts in culture-themed organization workshops across the organization is another step for reducing the problem of systems centrism. Such leadership workouts and leadership workshops would provide leadership team members and other senior executives a medium for reflexive organizational leadership and cultural engagement and feedback.