Managers often find themselves in a paradoxical position within organizations: they play a crucial role in the organization’s results, but companies generally invest little in them. The American consulting firm McKinsey & Company has analyzed the fundamental role that managers play in the company’s results, both operationally and financially. Although in my opinion, many companies do not take good enough care of this management level, the study highlights the importance of investing in them.
McKinsey found that organizations that foster managers who exhibit key behaviors, such as fostering innovation, building trust, emphasizing efficiency, and empowering employees, achieve significantly better results. These behaviors not only improve team dynamics but also drive the realization of organizations’ strategic objectives.
McKinsey describes 5 SPECIFIC ACTIONS THAT COMPANIES CAN TAKE TO EMPOWER THEIR MANAGERS AND THEREBY ACHIEVE BETTER RESULTS:
- OPTIMIZE MANAGEMENT TASKS: Redefine organizational structures to ensure that middle managers are not overwhelmed with tasks, allowing them time to focus on strategic thinking and managing their teams.
- REESTABLISH THE ROLE OF THE MANAGER: McKinsey is committed to renewing managerial responsibilities by eliminating bureaucratic tasks and taking advantage of technologies such as artificial intelligence and other technological tools to optimize workflows.
- DEVELOP SKILLS: Prioritize management behaviors linked to business impact, providing specific training and development programs tailored to individual needs.
- IMPROVE THE C-SUITE EXPERIENCE: Foster a sense of purpose, prioritize inclusion, and provide opportunities for growth to keep middle managers engaged and motivated.
- ESTABLISH PERFORMANCE EVALUATION MECHANISMS: It is advisable to align performance management systems with the desired behaviors, incorporating continuous feedback loops and transparent evaluation methods.
These steps pave the way for managers to not only navigate volatile business landscapes but also contribute significantly to talent retention, talent acquisition, and overall employee well-being. It is important to highlight that it is not just about the qualitative benefits; Investment in management directly impacts financial performance, generating substantially higher total shareholder returns over time.
The research underscores the critical role of managers in shaping organizational health and financial prosperity. Leaders are encouraged to view these professionals not only as operational pillars but as strategic assets capable of driving the company toward sustainable success.
McKinsey’s insights serve as a wake-up call for organizations to reevaluate their approach to managers. Investing in them is a strategic imperative that promises substantial returns and, more importantly, cultivates a thriving organizational culture primed for long-term success.
I end with a quote from Richard Branson that perfectly summarizes the essence of this post: “Train your people well so they can leave, treat them well enough so they don’t want to.”
