Monday, February 20, 2023

Some Thoughts About the Great Flattening


Returning to work is a powerful emotional experience. My friends and colleagues were glad to see me, and a pile of work awaited me upon my return. The time away gave me a deep feeling of gratitude. Of course, I had to kick some rust off, but it did not take long to gain my bearings and return to the usual flow of work. My body had other plans, and I had to rest as the healing process continued. It was a strange week in business news. The late reports about technology layoffs pointed out that discharges disproportionally targeted managers at companies. News also surfaced that Meta was attempting to “flatten” its organization. I have spoken about management and leadership on this blog, and I need to share more. 

I always disliked the term manager. In my experience, leadership at any level is more significant than official management titles. It implies an act of authority over others which is short of leadership and greater than building customer value. Serving in a management role also includes plenty of responsibility with none of the corresponding authority. It creates awful paradoxes where people are being pushed and pulled in two different directions, first by executives above and then by the people they serve below. It explains why recent surveys of middle managers show that 43% suffer from burnout. 

It also does not help that many executive suites have the characteristics of the VIP room at an exclusive nightclub. Many executives come from similar MBA programs and have yet to spend time working with customers or employees. When this happens, tunnel vision takes over, prioritizing what the executive team wants versus what the customers might be demanding. It is all fun and games when interest rates are low and business is good, but increasing interest rates and venture capitalists looking for the next big thing trigger over-reactions. The recent tech layoff is an example of these over-reactions. 

So with executive leadership looking out for themselves during difficult economic times, middle managers and front-line employees bear the burden. Naturally, those left behind in the aftermath of layoffs must take on the duties of those who are gone. It is a significant problem in the technology industry because work outstrips the number of competent people to complete that work. It explains why Meta is attempting to flatten by forcing its managers to code with their teams. 

To an executive, this seems logical, but it is fraught with peril. First, programming is a creative skill like music or dance. It is rare for a choreographer or conductor to return to the performing company because they often need help to physically perform the skills. Next, asking technology managers to code and perform their typical management duties means they must improve their skills. Requiring a manager to code means less time for meetings, performance appraisals, and transmitting messages from executive leadership. Executives might say those functions are unimportant but will be when raises and vacations are late for line employees. Finally, managers are connective tissue within the organization because much of the work is too specialized for executive leadership. Someone needs to make sure the network engineers keep the network running. A good accountant must keep accounts payable up to date. Human resources people understand the law and can prevent both strikes and lawsuits. Without this specialized knowledge, most modern businesses would collapse like a house of cards. 

I lived through two downturns in my career. It is not pretty. However, the executives who try to flatten organizations often discover that they need the managers and specialists they depend on to run the organization. You should expect sanity to return to corporate offices in twenty-four to thirty-six months. Let's all tough it out in the meantime.

Until next time. 


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