Middle Management = Competitive Advantage?

Middle Management = Competitive Advantage?
In times of economic uncertainty middle managers are often first in the firing line as organisations seek to streamline costs and business processes. So when is it appropriate to reduce middle management and when is it important to invest in and develop this group?

When cuts are needed
When organisations rationalise, middle management roles are often found to overlap and efficiencies can be made by reallocating responsibilities and removing duplication. It is, however, vital in these circumstances that those managers who remain have the skill set to deliver what is expected of them.

Chartered Institute of Management (CMI) Chief Executive Ruth Spellmen commented on this in a recent article for the Financial Times: “middle managers have been squeezed badly during the recession, with many being asked to do three or four times the amount of work they were doing previously. Personally, I would prioritise middle management training at the mo-ment above anything else. They are the people who are going to deliver some of the key changes or not.”

The CMI’s Future Forecast: Expectations for 2011 report also builds on this view suggesting that: ‘Skills shortages, poor morale, poor leadership and a lack of manpower are all contributing to managers’ concerns about their organisations’ ability to achieve business objectives.

Unlock sustainable performance
It is an interesting point on middle management training, because inherently when organisations are under pressure training budgets get squeezed. The advice now emerging is that even when training spend is limited, any available resource is well spent on middle management development.

The Chartered Institute of Personnel and Development (CIPD) report Shaping the Future reinforces the value of unlocking sustained, long-term performance from this group: ‘Middle managemen’ have a valuable transforming and translating role but are often bypassed rather than refocused, re-skilled and leveraged.’

A valuable contribution
As research suggests motivated and skilled middle managers clearly have a valuable contribution to make. In the short term – when times are tough – they can boost morale and engage those working for them, while also assisting the senior management team to achieve longer-term business objectives.

Develop key skills
To make this three way partnership a success, now is the time to focus on developing key skills for middle management. Strategic decision making, networking, coaching and mentoring, project management and communication skills are all popular choices that can be implemented cost effectively.

A key enabler of performance is also sharing knowledge. It’s not always easy to do, but giving managers time out away from their workplace can be invaluable. They can network with peers, share ideas and focus on their own goals, boosting morale and encouraging thinking beyond day-to-day challenges.

The key to future success
To conclude, it’s fair to say there is no ‘one size fits all’ answer to refocusing and reskilling middle managers as every business has its own needs. The message now, however, seems clear: in times of economic uncertainty, effective, knowledgeable and skilled middle managers could hold the key to future success.

March 2011