As far back as 1988, Peter Drucker predicted that in 20 years the average company would have halved hierarchical levels and two-thirds fewer managers. But in reality the opposite has happened: the number of managers within organizations has been growing in recent decades, and the bigger the business, the deeper the problem. Gary Hamel and Michele Zanini, authors of the book Humanocracy, saw a pattern: when a company crosses the mark of 200-300 employees, the bureaucracy in it spreads faster than the business grows itself.

Bureaucracy is part of our nature, because people (especially managers) strive for power, and bureaucracy meets that need. In addition, the bureaucracy can help create and maintain clear rules, policies, and processes. But when there is too much of it, companies find it more difficult to develop flexibility and innovation – capabilities that are indispensable in today’s world.

• So, where is the line between “healthy” and “sick” bureaucracy?
• Does it depend on business or other organizational factors?
• And what is that “humanocracy” that Hamel and Zanini are talking about?