Org Constitution Article 4: Managers

This continues The Organizational Constitution started here & previous Article 3: Process here .

Intro

Goes without saying, effective managers and a streamlined management structure significantly enhance both work happiness and productivity. Conversely, poor management is a major driver of employee disengagement, and excessive management is one of the main reasons larger organizations become bloated and dysfunctional. This article reimagines management structures, aiming to minimize layers and maximize efficacy.

Section 1: Layers

Aim for a management structure with a maximum of three layers: doers in the first layer, functional managers in the second layer, and general managers in the third layer. Different situations may warrant a different combination than functional and general, but the principle is to avoid work and decisions from having to filter through more than two management layers.

In larger organizations, you might scale this paradigm with an additional sublayer for managers of managers within both the functional and general manager layers. However, these sublayers should still feel like a single layer for decision-making purposes.

Managers can level up within a layer, but additional levels should not translate into additional management layers, which can lead to unnecessary and counterproductive bloat.

Section 2: Functional Managers

The primary role of functional managers is to provide guidance to doers and, when necessary, sign off on decisions specific to their area of expertise that a general manager is unqualified to make. Functional managers are chiefly responsible for performance management since they have an expertise in their craft, while general managers handle business decisions that span multiple functions.

Within the functional layer, there are also mentors, who are not managers but have demonstrated expertise in their field. Mentors can provide guidance but are contributors, not approvers, in the DACI framework . Some senior doers can become mentors, but not all need to take on this role to advance within the doer layer. Mentors can serve as a pipeline into functional or even general managers.

Section 3: General Managers

General managers are the deciders and drivers of the most important cross-functional projects. They should focus only on top priorities and empower others to drive some projects, promoting autonomy and leverage.

Ideally, there’s a single general manager for each organizational unit, instead of the functional managers of that unit serving as general managers. The latter can lead to an unwieldy structure with too many decision-makers or a lack of a clear decision maker. A manager can be both a functional and general manager, but their role as a general manager should be explicit and clearly demarcated as the Decider for a specific unit or scope.

Section 4: Drivers AND Deciders

Drivers

Functional and general managers should dedicate at least a third of their time to doing/driving projects, but preferably half or more. They can’t just review others' work. This ensures that managers remain in touch with the practical aspects of their roles and continue to directly contribute value.

Deciders

Managers should operate at two speeds within their decider capacity:

• Small Things - For minor or less risky matters, managers should leave decision-making to the doers and only be informed, intervening if truly necessary.
• Big Things - For major, complex, or risky issues, managers can serve as deciders.

Article 5: Performance Management continues here .