For businesses that contain a large portfolio of affiliates, how do you ensure that all businesses are operating to their full potential? Centralized companies (companies that reserve decision-making to upper management) may have the infrastructure in place by hiring broadly and filling in the gaps – but where is the diversity and ability of employees to feel like themselves? they really contributed to the future of the company?
One of the biggest challenges facing flat organizational structures is maintaining a balance between freedom and structure so that a company can achieve its goals. Although being a flat organization is quite fashionable, for some companies it has become quite chaotic. For these reasons, we are starting to see businesses being built in a decentralized way. A decentralized organizational structure is one where middle and lower level managers have the majority of decision-making power. The people who work closest to the projects have the most say.
TripleOne is a company fully immersed in a decentralized organizational structure and leading the charge. With 19 companies already operating under its banner, they have created an entity where users from all over the world work together to manage it. By combining an online framework with their growing global network, TripleOne aims to enable a community of participating “users” to come together to decide the future of TripleOne’s entire portfolio.
“We rely on the team environment, where every employee has a say in what happens,” said James Awad, CEO of TripleOne. “Users around the world work together to build and run the business. Users are rewarded with segments which in turn earn monthly money based on the performance of their businesses. »
If you can build your business in a decentralized way, you can open doors to new opportunities that include expanding your team and its capabilities.
Here are three reasons why entrepreneurs might want to start their business in a decentralized way.
1. Anyone can participate in decision-making
By having a fully decentralized online business, the business can ideally accommodate anyone, regardless of their geographic location. This allows anyone who wants to get involved to have an active role in the day-to-day business of the company. While it’s akin to having a distributed team, having a decentralized team takes things a step further. Not only can you find the best talent for your business, but they are also empowered to work on the projects they are most passionate about.
Individuals around the world can collaborate on ideas and projects that they vote for themselves. You can refer to company personnel as “employees” and “users”, where employees are salaried to manage day-to-day operations that keep a business compliant and functional, and users are paid by project or metric and work on things who do the most. meaning for their skills and talents.
2. Decisions are made by popular vote
Decentralization itself means there is a lack of hierarchy, making the level playing field. With voluntary participation, if an idea is deemed viable, all active users have the opportunity to vote on whether it will come to fruition. From here you can assign jobs to the project where users/employees can choose which job they want to apply for based on their skills and experiences.
Having your team decide which projects they think will be most innovative for the business, and pay tied to success metrics – everyone is aligned with project success and business success. Talent is distributed where it’s needed most and buy-in is much higher when everyone has a vote.
3. Flexible working hours
Another major advantage for a decentralized working environment is of course the flexibility of working hours. Because it is a decentralized system, there is no “boss” per se, so systems should be implemented that reward work done or metrics achieved. For example, you can create a “points” system, which is awarded for each vote, suggestion, or completed task. Points translate into earned money. If a user or employee does not complete a task or simply does not have the hours to devote to the project, the money is not spent on unfinished work or office time.
Your team can control the amount of work on their plate so they can devote more or less time to the project as needed. This is a great benefit for anyone who might be dealing with a family emergency, burnout, or just wants a well-deserved sabbatical.
Creating a decentralized organization requires advance planning, but if done right, you may see an increase in employee engagement, job satisfaction, and profits.