A reverse hierarchy (or inverted pyramid) is a conceptual

organizational structure An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundat ...

that attempts to "invert" or otherwise "reverse" the classical pyramid of

hierarchical organization A hierarchical organization or hierarchical organisation (see spelling differences) is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of a hierarc ...

s. In the proposed structure, key decisions are made by the

employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other ...

s in direct contact with customers, while progressively senior management positions provide support and help to the customer-facing employees.

History and examples

The term "invert the pyramid" is attributed to Jan Carlzon, who transformed SAS airlines by giving front line employees authority to make decisions on the spot.Carlson, Moments of Truth, Harper Business, 1989 The creation of the reverse hierarchy has been attributed to the

Nordstrom Nordstrom, Inc. () is an American luxury department store chain headquartered in Seattle, Washington, and founded by John W. Nordstrom and Carl F. Wallin in 1901. The original Wallin & Nordstrom store operated exclusively as a shoe store, and ...

retail organization. Other notable adopters of this structure include the

United Parcel Service United Parcel Service (UPS, stylized as ups) is an American multinational corporation, multinational package delivery, shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company ...

and Canadian Imperial Bank of Commerce.

References

Theory of constraints {{org-stub