The saying, “less is more,” is especially true when it comes to a company’s management team. With too many managers on board, your business becomes top heavy and faces many negative impacts—all are unnecessary challenges your enterprise must overcome. We encourage you to take a good, hard look at your management structure and remember that quality is far better than quantity when it comes to running your organization.
Negative Impacts on the Business
While spreading responsibilities amongst a number of managers seems like a great idea at first, businesses begin to suffer under a top heavy command chain. The overall business process slows to a crawl because approval must go through decision making processes of multiple managers. Initiatives become unclear, especially when multiple initiatives are pushed by multiple managers within the same hierarchy.
Public perception of the company also suffers when businesses are top heavy. Potential employees, competitors, the public, and investors often start thinking top heavy companies hire too many employees, which in turn makes them see the business as unsustainable.
Negative Impacts on Managers
Managers who exist within a top heavy company feel the strain. They feel the need to compete with others in similar positions, which can lead to them pushing for conflicting initiatives, especially when big projects are involved. They grow to feel powerless, useless, and frustrated, which weakens their ability to manage.
Managers view their roles differently in a top heavy hierarchy. In a lean organization, managers are expected to deliver results and keep their teams running smoothly. In a top heavy organization, they worry more about managing and less about delivering actual results. This often leads to managers micromanaging their teams to justify their position to their bosses—which is bad for employees and their productivity.
Negative Impacts on Employees
Having a top heavy organization negatively impacts employees. If employees report to multiple managers, they may have difficulties navigating which manager’s projects have higher priority or figuring out which manager they need to go to for approval on each aspect of the project. Employees will feel overly managed, which causes undue stress and makes them less likely to think creatively or suggest changes for growing your company.
Employees will also see the bloated management structure and recognize there is little to no opportunity for growth within your organization. Talented employees will begin to look for career opportunities with other companies with more room for growth over the long term. Ultimately, this can lead to a high turnover rate in the company.
If you suspect your organization has become top heavy or is at a risk of doing so, speak with a member of our business development team today. We can help you to refocus and streamline your management team so that your company can operate smoothly and efficiently.