One of the misconceptions about lean thinking is that it automatically leads to flattening the organization. Many people think that layers of management are always a bad thing and start removing layers as a way to empower employees, speed up decision-making, and improve innovation. While there is no shortage of organizations that suffer from too many layers, it should be noted that flattening does not necessarily lead to improved performance. Many organizations that flattened their structures have experienced little more than burned out managers, frustrated employees, and high turnover.
Removing layers of management downplays the important role managers play in improving the organization’s performance. This includes responsibilities like coaching people to solve problems, developing future leaders, and continually removing barriers to team member performance.
When an organization removes layers and managers have large numbers of people on their teams, it is not possible to spend the time needed to develop problem-solving or leadership skills of team members. As a result, the managers resort to directing and telling, rather than coaching and teaching, leaving team members feeling stuck with little hope of improving their skills or growing in their careers.
Flat organizations leave personal development completely up to the individual, something that rarely, if ever, works effectively. When people are left to develop on their own, the lack of objectivity will lead them to focus on the areas they want – rather than need – to improve. When this happens, the team member, as well as the organization, stagnates resulting in a deterioration in customer service and long-term performance.
Understanding the Problem
One of the reasons often given for eliminating layers of management is that managers get in the way and slow down processes. Although there are cases where this is true, eliminating layers is not necessarily addressing the root cause of the problem. The company can benefit more by understanding why its leadership is ineffective and its processes and systems are slow, rather than assuming it is because of excessive layers. Firing managers without addressing the real causes of poor performance can magnify the problems and, after a short-term improvement in results, end up in worse shape than if no action was taken.
No Quick Fix
In spite of what many believe about management layers, they do have a purpose in organizations. Flattening the organization is a fad that ignores the importance of developing people and continually improving. As companies like Toyota, Facebook, and Google have proven for many years, long-term success still comes down to effective leadership, respecting people, and a never-ending focus on improvement.