Leadership Tips: How to Develop and Retain a Strong Middle Management to Drive Performance Excellence

Unlocking Value, Improving Productivity and Maintaining Your Competitive Edge Through Dynamic Leadership Development – an Evaluation of SSO Mid-Management One of the key drivers of performance excellence in Shared Services is "management". Though the concept is as old as the hills, the skill, and all that goes with it, is often forgotten amidst the excitement of new technologies, alternative sourcing opportunities, and process improvement. Nevertheless, the fact remains: a good manager will make the difference between a really impressive service – and a simply mediocre one. As companies are increasingly flexing their Shared Services muscle for the benefit of the international marketplace, having knowledgeable and innovative Middle Managers to drive this growth will be crucial. It is particularly important – given cultural differences – that local Managers are given all the training and mentoring they need to excel within the international business environment. Success or failure will, to a large extent, depend on how well senior managers’ strategies are implemented at the operational level. Middle Managers will have a significant role to play in making this happen. The "Middle" Vantage Point of Middle Management Within the organisational structure, Middle Management is coming under the spotlight as a key performance enabler. Positioned as they are in between senior management and a subordinate level, Middle Managers typically carry out the strategic directives of upper-level managers at the operational level, supervising subordinate managers and employees to ensure a smooth functioning of the enterprise.[In Shared Services, "Middle Managers" are often also characterized as "Front Line Managers" as they coordinate the activities of front line employees.] It’s a position that was all too easily eliminated during the crunch years of the global financial crisis, when it was perceived as an opportunity to shed costs without unduly disturbing operations. And while companies have been slowly reintroducing these positions, Middle Managers are now even more challenged, often expected to manage more people with fewer resources at their disposal. At the same time, their position of influence is increasingly threatened by the emergence of knowledge workers and new technologies. Pushed from above and squeezed from below, it’s no wonder Middle Managers are underestimated, says Lynn A. Isabella, an Associate Professor of Business Administration at the University of Virginia Darden School of Business, in a recent article5. But today’s operations offer Middle Managers the opportunity to leave their reputation as mere "implementers" behind, and become more proactive. Isabella explains that the "middle" vantage point allows them to understand more about "what’s going on in the organisation than those at the top or bottom. Through the teams that they manage, they touch many stakeholders in the company and can feel the pulse of the marketplace. They can see the bigger strategic picture on the horizon and can identify operational issues. More than ever before, this ‘middleness’ places them in a position of integration and synthesis." The very "middleness", she says, is leading to new opportunities. The real strength of the Middle Manager, according to Isabella, is their access to the folks in the trenches, who know what’s really going on and can offer valuable feedback on whether an idea will fly. But Middle Managers also need to speak the language of senior leadership. Balancing the two is a skill that takes learning, observation, and mentoring to get just right. But once it is embedded, that Manager becomes incredible valuable as a business enabler. "[Middle Managers] need to understand strategic thinking and the language of finance, accounting, marketing, operations and human resources," she explains. Where Middle Manager may once have been in danger of being swept off the table, they are today a key part of a successful service delivery strategy. This extends to outsourced services, too, where the institutional knowledge, governance skills, and coordinating capability of Middle Managers all serve to strengthen and support an outsourced workflow. Deborah Kops, a Shared Services and BPO veteran and founder of SourcingChange, says, in an article6 on SSON’s website: "The retention of middle management is vital to sourcing success. Why? Firstly, if the typical organisation is made up of a series of interlocked or overlapping activities, it runs on a series of personal relationships. And these relationships must be grounded in a strong, mature understanding of the company culture and more." Most Common: Soft Skills Gap A challenge many Middle Managers face is that while their current roles require them to manage people and get the best out of their teams, their experience to date does not generally prepare them for the "softer" skills this entails. On the contrary. Anil Bhavnani, Director of BPO Operations/Global Financial Solutions, at Pfizer, believes that many people are promoted to Middle Management from a position of Subject Matter Expert. "However", he says, "they are not people managers, and often lack the competencies or behaviours needed to motivate a team." Pfizer has developed a training program to plug this gap. Called the "Cornerstones of Management Program", it recognizes the fact that new Front Line or Middle Managers need to be coached and mentored to maximize their impact, and that they deserve to be supported every step of the way. Of Pfizer’s roughly 500 Shared Services staff across Asia, Bhavnani estimates 10% are Middle Managers. All of these Managers enter the Cornerstones program when they are first promoted, joining their peers in workshop- and classroom-like environments, where they are taught the behavioural competencies expected of them in their new positions. Each manager leaves with their own action plan, which helps them apply their learnings in the work environment. After 6 months, they reconvene for Part 2 of the workshop, where they share their learnings with each other and develop further work plans. "This learning is very experiential in its nature", explains Bhavnani. "It’s really as much about mentoring and coaching, by our internal experts, as it is about learning. The fact that the managers work together in a cohort also build valuable relationships for later." Support Middle Managers in Facing Their Challenges Today’s Middle Managers face a number of challenges other than the soft skills outlined above. The changing internal and external environment means they feel the pressure of high performance expectations and constrained budgets. In addition, Bersin by Deloitte1 has identified some specific challenges Middle Managers face: Increased span of control Increase in customer-facing activities by direct reports Less time spent on development Evolution of the job due to technological innovations Implementation of policies and strategies in a global environment Managing several generations While some of these challenges limit the impact of Middle Managers, corporations can counter this by increasing the level of support, according to the report. For example: 1. Visibly Support Your Middle Managers It may be necessary to review your policies as far as Middle Management is concerned, and increase your investment in them. Collaborating with HR to prioritize will be decisive. According to Bersin’s research, a 1:1 correlation exists between the overall effectiveness of an organisation’s HR function and the effectiveness of the organisation’s Middle Managers. 2. Develop the Right Capabilities Organisations that have the highest scores for employee engagement, retention, and teamwork, are also organisations that took a broader approach in training their Middle Managers. They have, for example, included communications, managing change, and coaching, as well as the routine skills. 3. Hold Leaders Accountable for Supporting Middle Managers In Bersin’s research, 77% of organisations in which executives held leaders accountable for supporting Middle Managers had above-average business results, compared to just 8% of organisations that did not have this kind of accountability. 4. Communicate Goals on an On-going Basis Goal communication is a veritable minefield. Commonly, goals are communicated by a senior leader to managers at an annual meeting, in which communication is one way and which is not conducive to discussion. However, Bersin’s research shows that where organisations make goal setting an on-going process they are 23% more likely to achieve strong customer satisfaction. [eventpdf] Today’s Companies Are Lacking in Middle Management Development According to a recent FastCompany article by Peter Walsh of Harvard Business Publishing, today’s flatter organisations mean that responsibility is being pushed down the line, increasing Middle Managers’ loads. But at the same time, these Managers are not being supported through a parallel investment in skills and training to match their role’s evolution. Walsh’s article quotes a Harvard Business Publishing study, which found that less than a third of organisations felt their development programs had evolved to match the changing needs of Middle Managers, and more than two-thirds thought they might need to entirely revamp their middle manager development programs to prevent excessive and costly turnover. The latter empties out talent pipelines and disrupts succession planning. With many industry reports (for example, Deloitte’s 2014 Global Human Capital Trends report) highlighting significant retention and engagement problems within corporations, it is time to address this leakage with a comprehensive strategy. How to Retain Middle Managers Through Innovative Strategies Walsh offers the following tips to help you retain Middle Managers: 1. Start developing leaders early in their careers Avoid the risk of burnout or turnover by offering relevant training as soon as you have earmarked an individual as management potential. Don’t accept only "basic training" for new managers. A 2013 survey of talent development professionals, by Harvard Business Publishing, showed 80% of respondents were building change management skills among Middle Managers, while 76% indicated they were focusing on communication and talent management capabilities. 2. Time, not money, is your #1 challenge The above-mentioned Harvard study found 70% of respondents listed time over money as the major impediment to new development programs. What this means is that you have to be creative about offering training to Middle Managers – preferably by embedding it into their day in a way which does not require them to take time off work. 3. Use new technology to offer flexible training Today everyone has access to YouTube, Facebook, WebEx, GoToMeeting, and Skype. Use this technology effectively to minimize time away from work by making training available online, and easily accessible whenever the manager’s busy day allows (e.g., while commuting, or while traveling). 4. Promote a leadership mind set Mind-set and leadership behaviours are emerging as valuable qualities. Middle Managers need to shift from a focus on personal achievement to gauging success based on a team’s activities. Beware of organisations that are so flat they don’t give Middle Managers the controls they need to get results. Support Middle Managers in establishing trust, and shaping a positive culture through persuasion and collaboration. 5. Encourage leadership training beyond classrooms Apply Harvard Business School’s "Knowing-Doing-Being"3 leadership strategy to Middle Managers to help them become more effective. This is based on the premise that practicing leadership (doing) and changing one’s mind-set (being) is as important as the traditional practice of acquiring new ideas (knowing). Introduce experiential on-the-job learning through a 360-degree, immersive environment that encourages a positive feedback loop. To get even better results, Walsh suggests letting Middle Managers go through a training program in groups "to create a sense of togetherness". The relationships they build and the connections they make will support them, and the company, throughout their career. Driving Performance Excellence You probably have already recruited a strong team and are actively training and monitoring its performance. Here’s what else you could be doing to develop a truly outstanding Shared Services management team that will deliver the performance excellence your international customers demand: Recognise Middle Management as your critical core, and give it the attention in needs. Reassess your current capability to develop it. Support Middle Managers through tailored training, and you’ll stand a better chance of retaining them ("Train & Sustain"). The definition of a Middle Manager is changing. No longer do they merely carry out orders. Today, they are the eyes and ears of an operation. Offer rotation programs, to prepare Middle Managers for top management positions. Offer robust and attractive career and succession plans – upwards as well as laterally. Invest in mentorship programs. Develop a culture in which skilled staff thrive. Manage your reputation and brand to attract and retain management talent. Use social media. Think about innovative compensation and benefits policies that will incentivize Middle Managers performance and loyalty. [Note: if you liked this article, please use the buttons on the left side of the screen to share it across your LinkedIn groups. Thank you for being part of SSON's community - Barbara Hodge] For our Indian-based readers: Developing talent is the single most significant differentiator for service delivery organisations wanting to compete successfully. Get tips from leading practitioners at SSON’s Shared Services & Outsourcing India 2014 event. Register today, and join Anil Bhavnani, Director of BPO Operations/Global Financial Solutions for Pfizer, and others at this prestigious networking and learning opportunity. Download the brochure here to find out more. References: 1. Bersin by Deloitte: Middle Managers: Their Challenges, Value, and Helping them Perform Better 2. FastCompany: Leadership Now: 5 Ways to Save your Middle Managers From Burnout(Peter Walsh) 3. The Handbook for Teaching Leadership: Knowing, Doing, and Being (Harvard Business School) 4. Six Skills Middle Managers Need: Joseph L. Bower, Harvard Business School (video) 5. For Middle Managers the Power is in Translation, Lynn A. Isabella, The Washington Post 6. Outsourcing Change: Death of Middle Management? Deborah Kops, SourcingChange, www.ssonetwork.com

Leadership Tips: How to Develop and Retain a Strong Middle Management to Drive Performance Excellence

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