Blog

The Return of Middle Managers

“That experiment broke. I just had to admit it.” — Ryan Carson, CEO of Treehouse Island, on his attempt to run the company without managers

There is currently a widely-held view among organizational design experts and pundits that managers, particularly middle managers, are a harmful artifact of hierarchically-structured, command-and-control organizations. Conventional wisdom holds that middle managers, and their responsibilities and stereotypical behaviors, are outdated and severely constrict the speed at which a business can operate. Flat, democratic organizations made up of loose, recombinant relationships have gained favor in the org design world today because they enable agility and efficiency.

There’s just one problem with that view – it’s not entirely accurate. It represent an ideal that may be right for some organizations, but very wrong for many others.

Carson and Treehouse Island’s failed experiment was one of the examples given in a recent Wall Street Journal article (behind paywall) titled “Radical Idea at the Office: Middle Managers”. The common thread between the companies mentioned in the article was that the elimination of bosses had the opposite effect of what had been envisioned. Productivity decreased because workers weren’t sure of their responsibilities and couldn’t forge consensus-based decisions needed to move forward. Innovation also waned, because new ideas went nowhere without a management-level individual to champion and fund them. Employee morale even took a hit, because no one took over the former middle management’s role of providing encouragement and motivation when they were needed.

Research of over 100 organizations conducted by an INSEAD professor led to this conclusion, cited in the WSJ piece:

“Employees want people of authority to reassure them, to give them direction. It’s human nature.”

Enabling Technologies that Don’t

Another problem experienced by many of the organizations mentioned in the WSJ article was that technologies meant to enable employees to work productively in a manager-less workplace failed to do so. Enterprise chat systems were specifically fingered as a culprit, for a variety of reasons.

At Treehouse Island, which had never used email, decision-making was severely compromised by employees opining on chat threads when they had no expertise on the given subject. This led to “endless discussions”. The chat technology drove conversations, but ideas rarely made it past discussion to a more formal plan. Work tasks informally noted and assigned without accountability in the chat application mostly got lost in the shuffle and weren’t completed. Treehouse Island eventually turned to other communications channels and even acknowledged that email has valid uses.

Worker Education and Training, Not Managers, Are the Problem

While I agree with the assessment that human nature is a barrier to effective manager-less workplaces, I also think that our base impulses can be minimized or completely overcome by alternative, learned attitudes and behaviors. Society and institutions in the United States have programmed multiple generations to submit to authority, seeking and accepting its orders and guidance. Our educational system has largely been designed to to produce ‘loyal and reliable’ workers who can thrive in a narrowly-defined role under the direction of a superior. Putting individuals who have been educated this way into situations where they must think for themselves and work with others to get things done is like throwing a fish out of water.

As for enterprise chat technology, it has seen documented success when deployed and used to help small teams coordinate their work. However, most of those teams working in chat channels either have a single, designated manager with the authority to make things happen, or they are able call upon a small number of individuals who can and will assume unofficial, situational leadership roles when needed. Absent people to act with authority, chat-enabled groups become mired in inaction, as document in the WSJ article. As I put it in my recent Gigaom Research post on enterprise real-time messaging,

The real reason that employees and their organizations continue to communicate poorly is human behavior. People generally don’t communicate unless they have something to gain by doing so. Power, influence, prestige, monetary value, etc. Well-designed technology can make it easier and more pleasant for people to communicate, but it does very little to influence, much less actually change, their behaviors.”

We will see more experiments with Holocracy and other forms of organization that eliminate layers of management and depend on individuals to be responsible for planning, coordinating and conducting their own work activities. Some will succeed; most will fail. We can (and should!) create and implement new technologies that, at least in theory, support the democratization of work. However, until systemic changes are made in the way people are educated and trained to function in society and at work, companies without managers will remain a vision, not a common reality.