The Manager Rule

There is a constant push for improving efficiency in organizations to meet the needs of stakeholders and shareholders. When hierarchies are looking for ways to reduce cost, then managers are most expensive and the least useful components. In theory, a manager handles all operations within a unit and expending resources to manage the performance of that unit is a necessary.  In reality, managers spend more time making sure they are needed in the operations they oversee than doing the forethought, planning, and managing that are expected by the job description.


Here is a simple rule to decide whether or not you need a manager:

If the manager can't make decisions about the purpose, the people, or the resources of the suborganization he or she leads then get rid of the manager. Use a team lead instead. 

A team leader directs work day to day - they lead the team. Use performance bonuses to motivate the team leader to motivate performance. Use an administrator to account for the numbers day to day, just as before. Then a higher manager is responsible for many sub-organizations managed by team leads.  A manager still handles the extra effort but at a higher level and distributed. That is how you handle improving efficiency.

Leaders can run the work which is what you need. But they aren't responsible for those bigger decisions they need to go higher for a decision. Which is a win-win, you save on management and don't waste effort of a manager for day-to-day simple stuff.  Every big decision is still held by a higher manager, that is where accountability rests. 

The final change is the adopt a Leader / Manager contract that explains exactly the responsibilities of each. Depending on the specifics of the duties, the leader can set up the work, the team, and so on but needs approval by the manager. The manager oversees all administrative but cannot interfere with daily operations.  If a problem exists that stops production then the manager is responsible for resolving the issue. The team lead can halt production until those issues are settled.