Veolia transforms its management with an inverted pyramid structure

Water and wastewater treatment giant Veolia recently launched a corporate transformation initiative, dubbed “Osons 20/20”, to help put the company back on the growth track.

The result: a restructuring around 67 area bases and 9 regions. The organisational structure was streamlined, favouring more cross-sector connections and project-based work.

After observing that the top-down model wasn’t working anymore, the company decided to shift attention to accountability, collective intelligence and on-the-ground expertise. Subsidiarity and leadership became the two main ingredients of its new inverted-pyramid approach, turning its management structure on its head.

In other words, the traditional top-down model was reversed to become bottom-up. The new structure was built around local units, which were given more autonomy.

The company sent 500 managers for skills assessments and developed targeted training to help them adjust to the new model, which might have otherwise encountered natural resistance (due to the difficulty of letting go of habits, having to learn something new) or presented a difficult transition.

Based on the notion that frontline employees often know best, and that people should be allowed to make mistakes, a new management culture took root, with promising results: more innovation, higher engagement levels and a return to growth.