Decision making at most organizations is structured like a pyramid: Depending on the stakes a decision is being made by different people in the hierarchy. In a production company, changing the lead actor for a movie, may require the CEO sign-off, although it is the director who has most the best data to make that call.
As opposed to the pyramid structure, which can lead to bottlenecks as senior leaders are inundated with diverse problems they may be ill-equipped to solve, “with a tree, with many, many branches, you can make lots of decisions all at once. And there is a much faster growth that comes with that”.
At Netflix, for example, the informed captain is the decision maker, not the boss. Context setting is what feeds the tree, from the roots of all the way out to the highest branches.
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