The basic strength of hierarchies is that if they are designed well -- the departments/silos make sense in light of your business strategy and your competition, there aren't too many levels, the rules that accompany the hierarchy are smart and sensible -- hierarchies can be an incredibly efficient and reliable way to get work done. In fact nobody has found a more efficient and reliable way.
The problem is that hierarchies change slowly to changing conditions, to new rapid-fire strategic challenges, to technological discontinuities. They're not agile, they can't jump to the left or to the right quickly. In today's world you have to be fast and agile, but you also have to be efficient and reliable.
So the problem is that a well-designed hierarchy is still needed but it's insufficient. You need two systems, one that can handle speed with agility, and one that gets the work done today with quality and efficiency. And the two have to work together hand in glove.
Via Kenneth Mikkelsen, Wise Leader™