One of the key secrets of organizational growth is the development of the management team,”
says Gregg Steinberg, president of
International Profit Associates of Buffalo
Grove, Ill. “Middle managers have a unique
leadership role and they hold a great
responsibility for the maintenance, growth
and development of a company.”
Smart Business asked Steinberg to discuss the importance of developing middle
managers and the impact that it has on
small and medium-size businesses.
Why is it important for business owners to
continually help develop middle managers?
One of the key secrets of organizational
growth is the development of the management team. Organizational growth, in a
controlled environment, produces additional profit on a percentage basis as well
as an increase in the ease of operations.
This requires a strong middle and senior
management team.
In a perfect world, senior management
ultimately would be chosen from the middle management ranks, ensuring consistency, corporate vision, mission and culture. It is inherent that senior management
and ownership be focused on developing
middle managers. Rank-and-file employees, as well as new recruits, will see better
career opportunities if the hierarchy of the
company has been promoted from within.
What are the leadership skills that most good
middle managers possess?
They typically possess different skill sets,
depending on past experience. In many
instances, leadership skills are learned
rather than genetically inherent. As such,
rookie middle managers typically need a
substantial amount of leadership mentoring. This will identify which employees will
be a middle manager who has chosen to make that a career aspiration rather than a
stepping stone to senior management.
In many instances, middle managers are
initially promoted into their positions
because of their ability to motivate and
increase the morale of those they are managing. In addition, senior management perceives that those they promote into middle
management positions either inherently
have leadership skills that can be developed or believe that there is a strong desire
for career development. In either case,
middle managers have the ability to excel
in an environment that nurtures growth
and incentivizes productivity increases.
How can you help middle managers improve
their strategic thinking?
The first step in the key to strategic thinking is training someone to analyze an issue
from start to finish, before he or she delivers a solution or addresses an issue with a
subordinate or superior. The ability to fully
analyze a problem allows middle managers
latitude in their decision-making process
once senior management is comfortable
with their strategic thinking. Given this to
be true, it is incumbent upon senior management to delegate the analytical process
to middle management so that this skill can
be developed. Mentorship by analytical delegation ensures that employees learn by
experience and that future similar issues
will be handled in a manner consistent with
senior management expectations.
How can business owners keep middle managers satisfied with their positions?
They are no different than any other
employee. Human nature would prefer
daily challenges rather than daily tedious
routine. Therefore, in order to keep middle managers satisfied, it is important that senior management continue to engage them
in not only daily operational issues, but
also in strategic initiatives.
It is also important for the compensation
structure, tied to the middle manager’s personal pay, to carry incentives. In order to
accomplish this effectively, companies must
have tools that clearly identify how middle
management is doing, relative to expectations. Specific company statistics must be
produced daily, weekly and monthly, on a
real-time basis. In this manner, both senior
and middle management can measure and
score where they are on a daily basis against
expectations, goals and quotas.
In an environment where this information
exists, compensation structures can be easily designed and tied to daily reporting. It
allows them to manage themselves effectively and ultimately maintain a high satisfaction rate in terms of job expectations.
How can you identify, develop and retain an
employee who would make a good middle
manager?
Regardless of position, most managers can
identify individuals who clearly exhibit the
ability to be a leader or the desire to be considered for promotion. Positive attitude, loyalty, strong work ethic, team spirit and a history of being responsible can be outwardly
seen and therefore often act as self-selectors
for potential middle managers.
Ultimately, employees develop and stay
at their place of employment due to both a
high satisfaction level in their daily job and
the knowledge that they will be treated
fairly and loyalty returned.
GREGG STEINBERG is president of International Profit
Associates, Buffalo Grove, Ill. IPA’s 1,800 employees offer
consulting services to businesses throughout the 50 United
States and Canada. Reach Steinberg at (800) 531-7100 or
[email protected] or www.ipa-iba.com.
