A common myth among entrepreneurs is that organizational structure gets in the way of getting work done. Several innovative companies thus try to minimize or loosen their structure (Valve, Asana) to address issues they perceive are a result of “too much structure”. In my experience, this is usually a mistaken goal: problems don’t come from structure itself, but from an inappropriate structure. That’s why Holacracy aims at appropriate, requisite structure. To understand what this means, I find a simple distinction used by organizational theorist Elliott Jaques particularly helpful. He identifies three distinct types or meanings of structure that can be useful in any organization.
Great piece on Organization Structures and why they need to change.
See on holacracy.org