Thesis 003/The Management Operating Model
Management Is Becoming an Operating System
Spans and layers were set by the cost of coordination. That cost has collapsed and the structure has not moved. Nobody can say what a manager is for in an automated firm, how many are needed, or what they should be measured on. The system is a management operating model built for the firm as it now runs.
Every company automating a workflow this quarter is making a bet about what its managers are for. Almost none of them have written that bet down. Spans, layers and the authority to change a process were all set by the cost of coordination, and that cost has collapsed. Until someone answers what the management layer is for now, the answer is whatever last year's org chart happens to say.
The management layer was never a system. Spans and layers follow trust, tenure and politics, and coordination cost only ever described them after the fact.
Erin EatoughSenior fellow, and not the author of this thesis