Motivated by the benefits of small-world networks, we propose a self-organization framework for wireless ad hoc networks. We investigate the use of directional beamforming for creating long-range short cuts between nodes. Using simulation results for randomized beamforming as a guideline, we identify crucial design issues for algorithm design. Our results show that, while significant path length reduction is achievable, this is accompanied by the problem of asymmetric paths between nodes. Subsequently, we propose a distributed algorithm for small-world creation that achieves path length reduction while maintaining connectivity. We define a new centrality measure that estimates the structural importance of nodes based on traffic flow in the network, which is used to identify the set of nodes that beamform. We show using simulations that this leads to a significant reduction in path length while maintaining connectivity.