According to Nielsen, rank-based organizations hold that power positions are only to be shared with a few, the few who climb to the top. The emphasis here is that only those in those formal places of power can be trusted with the power to make decisions, etc. So, in this kind of organization, organizational issues are handled only by the top officers and those decisions are then passed along to the "rank and file."
Peer-based organizations, however, see in all the capacity to contribute in the issues that face organizations. In dire and difficult circumstances, all are invited to share in the exercise of power, the exercise of seeking solutions. Solution creation comes throughout all levels and departments. Whereas in the rank-based, officers only genuinely relate to those at the top of the organization, at the peer-based organization, this kind of genuine relationship crosses all levels. In fact, the distinction of levels doesn't exist. There is no "those-in and those-out" kind of categories.
Finally, there is no "top" feel in the peer-based organizations. There is no hidden agendas or "club memberships." There is a standing invitation to bring in all perspectives, all points of view. There is this kind of being around the table and asking each person, regardless of their view, to honestly and openly express their point of view. Quoting one business leader,
"We believe in rewarding communication even if it's communication about failure."So, what does your organization feel like?