Why your company is failing at building the next generation of leaders

In a relentless pursuit of agility and efficiency, many organizations are aggressively flattening their hierarchies, effectively eliminating layers of middle management. This move to a flattened organizational structure is often inspired by the success of tech giants like Amazon and Google, with the goal of accelerating decision-making and streamlining operations.

However, while automation can replace tasks, it cannot replicate the nuanced skills of strategy, vision, and decision-making that define true leadership. Even AI cannot replace the human element of leadership that drives innovation, inspires teams, and navigates complex strategic challenges.

Our collective challenge, therefore, is to understand the unintended consequences of this organizational flattening and implement actionable strategies to ensure that we are not sacrificing our long-term leadership capacity for short-term gains. The good news is that with intentional effort and a rethinking of how experience is gained, you can still build a formidable bench of executive talent. Here’s how:

1. STOP ERASING AND START REDEFINING YOUR MID-LEVEL EXPERIENCE

The most significant leadership development challenges in flattened organizations stem from the absence of director-level readiness. Without mid-level roles, you might miss crucial opportunities to manage people, budgets, and complexity at scale.

Think about the typical progression: from individual contributor to senior individual contributor, and then, traditionally, to manager. The manager role was where many learned the intricacies of people management, conducting performance reviews, navigating difficult conversations, and fostering team development. When organizations eliminate this stepping stone, employees can jump from senior individual contributor to director without ever developing these foundational skills. This creates a dangerous “experience gap.”

To counter this, identify the core managerial and strategic skills that were learned in those now-eliminated roles and create alternative pathways to gain them. For instance, you could take on internal “mini-CEO” roles for specific projects, giving yourself full accountability for budget, team oversight, and strategic outcomes, even if for a temporary period. Even at an individual contributor level, you can seek out opportunities to lead specific initiatives or mentor newer team members to build these skills.

2. PRIORITIZE PROJECT-BASED LEADERSHIP AND EXECUTIVE SHADOWING

In a flatter structure, traditional promotions are fewer, but opportunities for leadership experience aren’t. Empower yourself to lead complex, cross-functional initiatives. This is a powerful way for you to gain influence and exposure outside of your direct reporting lines, learning to navigate organizational politics, manage diverse stakeholders, and deliver results under pressure.

Simultaneously, seek out executive shadowing opportunities. Ask if you can sit in on high-stakes meetings or strategic offsites. This direct access to senior thinking provides an unparalleled understanding of how decisions are made at the highest levels, building your confidence and presence. This “real-time” learning is invaluable when formal management layers are gone.

3. FORMALIZE MENTORSHIP, SPONSORSHIP, AND TARGETED CAPABILITY DEVELOPMENT

Leadership readiness will not emerge by default in a flat structure; it must be deliberately built. Establish formal mentorship programs where senior executives provide direct coaching and feedback. Even more critically, sponsorship programs should be implemented where senior leaders actively advocate for emerging talent, opening doors and creating opportunities for growth you might not find on your own.

Beyond these relationships, create targeted development tracks with clear milestones that focus on specific capabilities required for future executive roles. For example, if critical thinking under pressure is a key executive skill, you might find that participating in leadership simulations or strategic case studies allows you to practice decision-making in a safe environment. This ensures that even without traditional promotions, you are continually acquiring and demonstrating executive-level skills.

BUILDING A CULTURE OF CONTINUOUS LEADERSHIP GROWTH

In the absence of established leadership ladders, organizations must take deliberate, proactive steps to build their future leadership pipeline. This presents a unique opportunity, whether you’re just starting your career or are a seasoned executive, to define your impact by the comprehensive leadership development strategies you intentionally create. It also clearly communicates the new growth expectations for leadership within a flatter structure.

If you lead an organization that has embraced flattening, you must recognize that designing meaningful development programs in this new landscape may be one of the most important contributions you make to your company’s long-term success.