Not only “cut and burns” – the real reason that this major pharmaceutical company overthrew 40 % of its medium managers
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While companies are looking to reduce costs, many executives are looking to trim bloating at the level of the medium manager. CEO of Amazon Andy Jaci In March, he said that he is planning to settle the company’s hierarchy of the company by eliminating medium managers and returning more power to individual shareholders. It is not alone in this thinking.
In an attempt to convert the company, the German drug giant Bayer made a fundamental decision last year: getting rid of medium managers and 99 % of the 1,362 -page companies.
“This was not an effort to reduce and burn only,” said Sebastian Gouth, CEO of Operations at Bayer Pharmaceuticals at the Fortune Workplace Innovation Summit on Monday. “Eighteen months ago, we started a very radical transformation, and as part of that, I spent here, here in the United States, for example, 40 % of all medium managers, which was what it was – which was necessary, but it was necessary to see our organization turning into a significantly more flexible world and this enables the difference to make decisions.”
He says that the decision led to a significant growth of the company, as the results of the first quarter showed 23 % growth throughout North America. He pointed out that not everyone was eliminated just because they were an average manager. In fact, relief said that some roles have moved from one of the roles to individual shareholders’ roles. The shift helped them “realize that the part of what they had done before was not actually adding great value as they wanted.”
However, not all leaders believe that eliminating middle management is the right solution. For example, Edith Cooper, founder of the Vocational Training and Training Company, said during the same discussion that the solution is not related to the number of roles that you can eliminate. Instead, executives must search for bottlenecks throughout the organization and target their attention there.
“If you are looking to create more influence and productivity from your first origin, for people, you must do the work,” Cooper said. “Look really to what should happen to cancel the capabilities of your people. Then, if there are places in this flow that becomes bottlenecks, you must do the work to understand how to eliminate you [them]”
Even Girm recognized such a comprehensive repair should be done strategically. He said that Bayer has invested greatly in compensating the managers who remained the goals of traditional management and eliminating the goals of traditional management in the budgets, which was a “very important opening.” He said that the most important thing is to allow the difference themselves to be what some of the changes say so that they are not only flowing from above.
“We allow the teams to flow resources to where they saw the biggest impact, and most importantly, we allow the teams to actually decide, because we have thousands of colleagues around the world who have amazing vision and knowledge.” “Instead of just waiting for others to decide on their behalf, we tend to what they test and see in day to day.”
Pret Morsi
brit.morse@fortune.com
This story was originally shown on Fortune.com
