Middle Management Faces Extinction

By Richard Hohmann

The reason that I entered this crazy business of people development and organization development is that I always believed that the “mid-level manager” was the most important position in the company. They have always been the glue that connects the strategy of an organization with the operational completion of the task. I have focused Innovative Leadership on the training and development of mid-level management. Unfortunately, I have not found the same commitment from Owners, Presidents and HR.

I’ve found there is always an excuse not to train and develop mid-level managers:

• Too costly for the company
• Manager doesn’t have the time
• Unable to define the ROI
• Learning is viewed as a luxury
• Not realistic to set up a real high-potential method of developing talent
• . . .and the list goes on and on.

People development needs to be the most important activity in companies today, but it isn’t. We are getting away from looking at people as our future leaders and have stopped talking about career development.  Fact: “Employer – provided training has the same effect on job satisfaction as a 17.7% net wage increase.” Harvard Business Review

Many companies eliminated the mid-level managers as part of their downsizing plan and totally flattened their organization making the mid-level manager an endangered species. I believe this has elevated the stress level of all employees including the remaining mid-level managers.

In the PricewaterhouseCooper’s 15th annual global CEO survey titled “Delivering Results: Growth and Value in a Volatile World”, 50% of the respondents identified “recruiting and retaining high –potential middle managers” as their chief talent challenge. Especially when companies are not currently hiring this needs to be a focus, but it sure doesn’t feel like the CEO is outlining a planned process for doing just that.

It is now the time for all leaders to realize that People Development is important for our future and it is their responsibility to grow and develop future leaders. In fact, it has to be their #1 priority for the next ten years. Why is it taking this long for the CEO to realize this?

4 Steps for CEO’s, Business Owners and HR to get everyone more involved in the People Development Process: 

The Coaching Focus is now on Leadership!

The focus or designed outcome for Coaching has changed. For the past ten years it has been on the rehabilitation of people who are under performing. Coaching today is now focused on leadership and the retention of key employees. It is finally becoming established as one of the best vehicles for talent management in terms of people development.

Coaching is designed to help people reach their potential or move upward beyond their believed limitations. This movement toward their potential improves their overall performance along the way. Coaching should be defined as a skill set or competency that must be understood and practiced by every supervisor, manager or employee in the company.

We need to support our talent at all levels in the organization, not only the ones at the top. This support and appreciation for people’s talents demonstrate your interest in the employee resulting in enhanced engagement. Coaching is a valuable method that uses communication, goal-orientation, and collaboration to elevate performance and help people realize that their potential is attainable.

In many organizations, the talent of the future is not ready for the position or role. Coaching can become the best instrument used by your company to guarantee that the knowledge sharing occurs and the future roles can be satisfied by the high potential employees that you have in the pipeline.

Our Coaching For Results Process can be established in your company with nominal cost that produces the results that can ensure the future of your company. In the end, it will be the people that make the difference! Are you using a Coaching Process to ensure success with your Talent Management process? Call us for more information on our Coaching for Results Process or our highly successful Executive/Performance Coaching Programs at 609.390.2830.

Succession Planning is the Future of Your Company

When interviewing a candidate for any supervisory or managerial position, I always ask the candidate, “What do you believe is the most important role you will have in this management position?” If the candidate does not give me an answer that involves the development of people in one way or another, I don’t really move forward with that candidate. My questions to you is, “How many of you focus on people development as a major skill-set for your managers?

The management of any company is responsible to ensure that the company or organization continually has the resources to be competitive, sustain growth and be viable in the future. These resources include the talent involved with the key positions that will do just that.

I have noticed recently that more and more companies are starting to seriously look at Succession Planning as the process that will ensure their future and that talent management is one of the most important aspects of their success.

I think it is important that companies today look at the following 5 key areas: