Every company has two organizational structures: The formal one

Listen now to the words of Harold S. Geneen, a man who, in his time, understood the true heart of organization: “Every company has two organizational structures: The formal one is written on the charts; the other is the everyday relationship of the men and women in the organization.” These words speak to the deeper currents that flow beneath the surface of every institution. While charts and official titles may dictate the outward structure of a company, the true strength of the organization lies in the interpersonal relationships, the unseen forces that guide its daily operations. The formal structure is but a skeleton, while the real life of a company is given shape by the dynamic web of human connection that sustains it.

In the ancient world, tribal leaders understood this truth well. The formal hierarchy, the lineage of rulers and warriors, may have been etched in stone, but the tribal community was not ruled solely by written laws. The relationships between individuals—those bonds forged in the fire of shared experience—were the lifeblood of the tribe. Leaders were not only defined by their titles but by the respect they garnered from their people. Charisma, the ability to understand and lead through relationships, was the true power behind every king and chieftain. It was not the written decree, but the respect and loyalty earned through genuine connection that governed the people.

Consider the famous example of Alexander the Great, whose empire spanned from Greece to India. Alexander understood that the formal structure of his empire, while important, was secondary to the relationships he nurtured with his generals, soldiers, and even the people of the lands he conquered. His leadership was not just about the edicts he issued, but about his ability to inspire those around him, to form connections that transcended cultural boundaries. The trust and loyalty he cultivated among his ranks were what allowed him to move mountains, conquer vast territories, and leave an indelible mark on history. In his case, the informal structure of personal relationships became the driving force behind the grand vision of his empire.

This same principle holds true in the modern world. Companies—whether a small startup or a massive corporation—may boast of their organizational charts and carefully delineated hierarchies, but it is the relationships that truly define their success. Think of the Apple company during its early years under the leadership of Steve Jobs. While the company’s formal structure certainly played a role in its success, it was the culture of innovation, the personal connections between Jobs and his team, and the shared vision of creating something revolutionary that propelled the company to greatness. Jobs understood that the formal structure of the company was only part of the equation—what truly mattered was the everyday collaboration, the energy and passion that flowed between the individuals who made up the team.

Geneen’s words also serve as a warning to those who would blindly follow the formal chart without paying heed to the relationships that sustain an organization. A company can have all the right policies, all the correct positions, and still fail miserably if the relationships between its members are not aligned. No amount of top-down mandates or well-crafted organizational charts can replace the importance of mutual respect, trust, and communication among the people within it. Without these human connections, an organization is like a body without a soul—mechanical, lifeless, and prone to dysfunction.

The lesson here, then, is not just for leaders but for every member of any organization: pay attention to the relationships you build. The formal structure may guide the direction of a company, but it is the everyday interactions that will determine its success. Whether you are a manager, a leader, or a team member, understand that the true power of an organization lies not in its titles but in the bonds you create with your colleagues. Nurture trust, build rapport, and foster open communication, for these will become the invisible threads that tie the company together, driving it forward with greater strength than any written directive ever could.

Therefore, I say to you: do not overlook the power of human connection in your journey through life and work. Cultivate relationships not for the sake of personal gain, but for the greater good of those around you. Recognize that in the end, it is not the titles we carry or the official charts we are placed upon, but the trust, the collaboration, and the shared vision that truly define us. Like the great leaders of old, whose influence was not limited to their formal roles, so too can you wield the power of connection to build something far greater than the sum of its parts.