Article: The Case for Middle Managers’ Development

Learning and Leadership Advocate, HRD Corp Thought Leader

1. Introduction

In today’s fast-paced and ever-evolving business environment, leadership development is paramount for organisational success. However, much of the attention and resources are devoted to the development of senior leaders or “top talent.” Middle managers, who serve as the vital link between strategy and execution, are often overlooked in this process. This paper will argue that investing in the development of middle managers is key to building resilient and high-performing organisations. By examining the current state of middle management, the challenges they face, and the organisational benefits of investing in their development, this paper presents a compelling case for shifting the focus towards middle-tier leadership.

The need for middle managers’ development is not a new concept. Nilakant, V. & Ramnarayan, S. (1990) wrote the challenges faced by middle managers due to lack of proper development. They noted, “…several large scale enterprises experience problems at the middle levels such as:

• inability and/or unwillingness of managers to take charge
• difficulty in working cohesively as a team
• lack of creative problem-solving approaches
• overly rigid interpretation of policies and procedures
• risk-averse and cautious behaviour
• filtering information upward, omitting news that might attract negative attention
• overstaffing”

Deloitte’s Global Human Capital Trends report indicates that, despite widespread awareness, organisations still largely prioritise top-tier talent over middle managers. Only 28% of companies actively invest in middle management development, emphasising this gap in focus and funding (Deloitte 2023 Global Human Capital Trends).

A quote in the Harvard Business Review made it a more perennial issue. “In the last quarter century, the workload of the executive has greatly increased. The top manager has new functions that cannot possibly be delegated completely. Businesses have grown in size, complexity, and geographical reach; the duties and problems of the top executive have increased commensurately.”  Lyndall F. Urwick (HBR 1956). This can be seen as relevant not only to senior leaders but to middle managers as well.

2. The Critical Role of Middle Managers

Middle managers are the linchpin of organisational effectiveness, bridging the gap between strategic decisions made by senior leaders and the day-to-day operations carried out by front-line employees. According to a Gallup report, middle managers account for up to 70% of the variance in employee engagement, a critical factor in determining productivity, employee retention, and organisational success.

In successful organisations such as Procter & Gamble, middle managers are known for driving localised team performance and customer satisfaction. In customer service industries, they ensure that strategic objectives (such as a customer-first approach) are consistently implemented across all locations. They also play a key role in maintaining employee morale, which is critical in industries with high turnover rates (Deloitte 2019 Global Human Capital Trends).

Their ability to translate complex strategic goals into achievable operational plans makes them indispensable, yet their development is often sidelined in favour of those at the top of the organisational hierarchy.

3. Challenges Unique to Middle Managers

Senior leaders typically focus on strategy, while top talent benefits from high-visibility development programmes. In contrast, middle managers are instrumental in managing and leading both strategic implementation and day-to-day team management.

Despite their importance, they often face a unique set of challenges. They are frequently “caught in the middle,” managing senior leadership’s expectations while simultaneously supporting and guiding their teams. Deloitte’s 2021 Global Human Capital Trends report reveals that many middle managers are tasked with implementing new technologies and navigating hybrid work environments, all without the necessary training or resources. This “squeeze” leads to increased stress, burnout, and, ultimately, a loss of productivity and engagement within their teams. The Center for Creative Leadership found that 58% of middle managers feel their organisations do not adequately support their development, contributing to high burnout and turnover rates among this group.

4. The Benefits of Developing Middle Managers

Investing in middle manager development yields benefits across the organisation.

Of the nearly 40 practices measured in McKinsey’s Organisational Health Index, there are 11 that relate directly to manager behaviors (McKinsey & Company, June 2023):

1. creative and entrepreneurial: supports innovation and creativity
2. open and trusting: encourages honesty, transparency, and candid dialogue
3. operationally disciplined: emphasises productivity and efficiency
4. authoritative: focuses on hierarchy to get things done
5. challenging: encourages people to do more than they thought possible
6. consultative: empowers employees through communication and delegation
7. supportive: builds a positive environment characterised by team harmony
8. inspirational: encourages through guidance and recognition
9. employee involvement: engages people on the direction of the organisation
10. personal ownership: drives individual accountability and responsibility
11. talent development: provides coaching for knowledge and skills

A study by Bersin by Deloitte found that companies with robust leadership development programmes for middle managers saw a 22% increase in performance. Middle managers who are equipped with the skills and knowledge to lead effectively are more likely to foster high levels of employee engagement, which, according to Gallup, directly impacts productivity, innovation, and retention. Furthermore, developing middle managers strengthens the leadership pipeline, preparing future senior leaders for their roles.

For example, AT&T’s middle management development programme, which focused on reskilling for digital transformation, reportedly increased engagement and empowered managers to drive digital innovation.

5. Organisational Practices and Shortcomings

Middle management is far from the most celebrated segment of an organisation, as many companies ceased substantial investment in this group decades ago (McKinsey, June 2023). Despite widespread recognition of their importance, many organisations fall short when it comes to developing middle managers.

Deloitte’s Global Human Capital Trends survey reveals a significant gap: while 70% of respondents agree on the significance of middle management, only 28% take active steps to invest in their development. According to SHRM, while 71% of organisations agree on the importance of middle management, only a fraction actively supports middle manager training. In contrast, executive training programmes receive significant budgets, sometimes up to 50% more than middle management. This disconnect leads to disengagement and contributes to high turnover rates within this critical tier of leadership.

For example, in the financial services sector, executive leadership often receives considerably more investment than middle management. McKinsey’s analysis shows that while senior executives often benefit from continuous coaching and advanced leadership courses, middle managers receive sporadic training, limiting their ability to handle complex challenges.

This gap between knowing and doing, exacerbates the depth and breadth of the challenges faced by middle managers.

6. Recommendations for Effective Middle Manager Development

Many organisations perceive middle managers as mere administrators or gatekeepers, as evidenced by the lack of development and support they receive. To position middle managers as “force multipliers” for organisational success (McKinsey & Company, June 2023), it is crucial to craft and implement targeted Middle Manager Development programmes.

Organisations must move beyond traditional, one-size-fits-all training. Tailored development initiatives focusing on soft skills, such as emotional intelligence and communication, are essential for effective leadership in today’s dynamic environment. Unilever’s “Connect” programme, which continually adapts its training content based on manager feedback, is an example of a successful approach.

Goleman’s research highlights the importance of emotional intelligence in leadership. Additionally, mentorship and coaching schemes can provide ongoing support, allowing middle managers to gain insights into various functions and leadership styles. IBM’s “Think Academy” is an example of a programme that offers customised learning for different management tiers, focusing on specific challenges for middle managers like coaching and change management. This personalisation increases effectiveness compared to generic training programmes.

Designing effective middle managers development programme requires time and effort. It involves deep discussions with stakeholders, including those directly and indirectly affected by the training, and neutral parties to identify root causes. Programmes effective in one organisation may not work in another due to factors such as organisational learning maturity, support ecosystems, and individual managers’ readiness.

7. Conclusion

Clearly, there is a chasm between knowing and doing, especially in what is needed for organisational success. Declaring the importance of middle managers cannot be just lip-service. Developing middle managers is not a “nice-to-have” but a critical investment in the future of the organisation.

Thus, the first step in ensuring middle managers are trained and well equipped is identifying the necessary performance measures, followed by development initiatives that target these performance indicators and behaviours that support organisational growth.

Implementing branded programmes may look good for optics and visibility. However, they may not meet the needs of middle managers or deliver the expected return on training investment.