This is the seventh installment in my series on going from 1 to 50 employees.
My view on management hierarchy underwent a 180 degree flip at around 35 employees. For a long time I had been a big proponent of "We don't need managers and hierarchy, a flat organization works a lot better." All well and good, but when you get above 15 people asking you for direction, you become pretty much useless to all of them.
There are hundreds of books on management structure. They address a lot of important issues: should we use a matrix structure? how many direct reports should a manager have? How closely should a manager supervise their direct reports? I don't have a clue how to answer these questions. I've instead relied on two principles: Promote from within; Hire rock star VPs.
Promote From Within. The folks who created and learned their jobs from scratch are the first candidates to be managers of others in those positions. Keep in mind I'm talking about a group of people with a lot of potential, drive and intelligence. These are exactly the right employees to challenge with tougher positions. The benefits of seeing a person meet these challenges far outweigh the risks of putting a junior person in a more senior role.
Hire Rock Star VPs. I keep hearing of this mythical manager who is threatened by hiring people more talented or smarter than themselves. I don't get it. Sure, I once managed the technology team and priorities, but why would I want to hold on to that with tight fists. I'd rather have somebody who has done that for 15 years take over. Giddy up. Of course, once you get a pile of VPs, it becomes even more important to communicate. Which brings me to...
Tool#8: The bimonthly management team meeting. This is a meeting where I invite smart people to call bullshit on me. Actually, that only happens sometimes. Mostly, we just meet and talk about the priorities and work flow of the upcoming month. Doing this twice a month provides continuity and clarity. Its amazing how often the statement... "I thought we all agreed on this last month" comes up. Sure, we all agreed, but not on the same details. This regular meeting eliminates misconceptions and aligns expectations. "Muy Bueno" as they say in France.
Promote From Within. The folks who created and learned their jobs from scratch are the first candidates to be managers of others in those positions. Keep in mind I'm talking about a group of people with a lot of potential, drive and intelligence. These are exactly the right employees to challenge with tougher positions. The benefits of seeing a person meet these challenges far outweigh the risks of putting a junior person in a more senior role.
Hire Rock Star VPs. I keep hearing of this mythical manager who is threatened by hiring people more talented or smarter than themselves. I don't get it. Sure, I once managed the technology team and priorities, but why would I want to hold on to that with tight fists. I'd rather have somebody who has done that for 15 years take over. Giddy up. Of course, once you get a pile of VPs, it becomes even more important to communicate. Which brings me to...
Tool#8: The bimonthly management team meeting. This is a meeting where I invite smart people to call bullshit on me. Actually, that only happens sometimes. Mostly, we just meet and talk about the priorities and work flow of the upcoming month. Doing this twice a month provides continuity and clarity. Its amazing how often the statement... "I thought we all agreed on this last month" comes up. Sure, we all agreed, but not on the same details. This regular meeting eliminates misconceptions and aligns expectations. "Muy Bueno" as they say in France.
Comments