Despite What Zappos Says, Middle Managers Still Matter - HBR

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MANAGING PEOPLE Despite What Zappos Says, Middle Managers Still Matter by Jim Whitehurst MAY 28, 2015 Middle managers have not fared well. Their ranks have been decimated in many organizations, and those that have survived are often perceived as powerless or, worse, as bureaucratic sticks-in-the-mud. This is not fair and it’s flat-out wrong. Take what’s happening with Zappos at the moment. Much has been written about their adoption of a self-management system —holacracy—with no job titles and zero managers. That move earlier this month saw 14% of their workforce choose to leave the retailer. While I applaud their effort to break down unnecessary walls, getting rid of managers is not the answer. Middle managers are increasingly vital to an organization’s success, though for different reasons than in the past. In the conventional hierarchical organization, middle managers used to be instrumental for controlling information flows and ensuring that frontline workers were producing. Roles were clearly

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Transcript of Despite What Zappos Says, Middle Managers Still Matter - HBR

  • MANAGING PEOPLE

    Despite What Zappos Says,Middle Managers Still Matterby Jim Whitehurst

    MAY 28, 2015

    Middle managers have not fared well. Their

    ranks have been decimated in many

    organizations, and those that have survived

    are often perceived as powerless or, worse, as

    bureaucratic sticks-in-the-mud. This is not

    fair and its flat-out wrong.

    Take whats happening with Zappos at the

    moment. Much has been written about their

    adoption of a self-management system

    holacracywith no job titles and zero

    managers. That move earlier this month saw

    14% of their workforce choose to leave the

    retailer. While I applaud their effort to break

    down unnecessary walls, getting rid of

    managers is not the answer.

    Middle managers are increasingly vital to an

    organizations success, though for different reasons than in the past. In the conventional

    hierarchical organization, middle managers used to be instrumental for controlling

    information flows and ensuring that frontline workers were producing. Roles were clearly

  • defined and orders flowed from the top down. Those in the middle managed the inputs

    and outputs. But were now in an era where information is far more free-flowing and

    hierarchical lines are blurred.

    Middle managers today need different skills and play a different role than their command

    and control era predecessors. According to a Harvard Business Review study, some 67% of

    companies recognize that they need to revamp their middle manager development

    programs. And at Red Hat we support a key set of capabilities that, for our organization,

    make a middle manager great. With many of our stars in this groupheres what makes

    them so invaluable:

    Influence

    Most people think that middle managers are becoming less important because they make

    fewer direct decisions. Nothing could be further from the truth. Middle managers need to

    be able to bridge the gap in understanding that often lies between an organizations senior

    leaders and those who are responsible for its daily operations. And they can have a massive

    impact on performance by catalyzing direction even within the most self-directed of

    workforces.

    Their new charge is to lead not by fiat, but by influence. Because I said so doesnt work

    with the current workforce. Instead of pulling rank with a subordinate or deferring to an

    executive, todays middle managers must build influence and gain credibility by listening

    to concerns and offering context that leads to better decisions. Creating context is key.

    At the same time, they need to influence their peers throughout the organization to ensure

    that efforts are aligned and pulling in the same direction. Thats especially true in fast

    growing and globally distributed organizations like Red Hat. We need our middle managers

    to keep us all on the same page.

    Inspiration

    We all know that innovation and passion are critical to a companys success. But lets face

    it, you cant force someone to be creative or passionate about their work. So the middle

  • managers role has become less about making sure people do what theyre told, and more

    about inspiring people to perform at their best.

    The best managers are those who marry their IQ with their EQ. They focus on the whys

    and hows rather than the whats. They are visionary, big picture thinkers who know

    how to create a sense of shared ownership and responsibility, as opposed to simply issuing

    orders.

    Being a middle manager often means taking less pride in your own achievements than in

    what your people accomplish. Its about putting the right people into the right places,

    looking for ways to tap into their passion and insight, and unlocking their full potential.

    Inclusion

    An open organization is a meritocracy, where good ideas can come from anywhere, and the

    best ideas win. Middle managements job is to create communication channels that allow

    ideas to percolate and circulate throughout the organization.

    Middle managers play a vital role in ensuring that all voices are heard, not just the loudest

    ones. They invite people to speak up and contribute their ideas, especially when their

    views diverge from the majority.

    In most organizations, the biggest clue that there is disagreement in the room is when

    nobody says anything at all. Concerns tend to come out around the water cooler, out of

    managements earshot. Middle managers can make it safe to raise objections. They can ask

    frontline workers questions like, From your perspective, what are we missing with this

    plan?

    The new roles that middle managers must play require different skills and capabilities than

    in the past. Open organizations must invest to develop these leaders. It starts with

    explicitly recognizing their new role. Training around soft skills. Building culture that

    recognizes and celebrates the right behaviors.

  • Jim Whitehurst is the president and CEO of Red Hat, the worlds leading provider of open sourceenterprise IT products and solutions, and the author of the book The Open Organization (HBR Press, 2015).

    Follow him on Twitter at @JWhitehurst.

    Related Topics: MANAGING ORGANIZATIONS | ORGANIZATIONAL CULTURE

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    Stephen Hayden 3 days ago

    Zappos is just leaving behind the label and general approach of a manager, replace managers with leadersin most of your article and Zappos would be doing much of that and still absolutely values that and willhave to leverage leaders to get through the dip of moving forward their new org structure the way theyhave. Theoretically with the new org more people will be involved in new processes and more leaders willsurface as a result. Constructs like policy help with things like keeping people on the same page orworking towards the same endeavours and the tension processes are there to help resolve day to daybusinesses.

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