Flat management wins: why startups ditch middle managers for faster decisions

This report explores how major Big Tech firms and startups are eliminating middle management to combat productivity-sapping fiefdoms. It highlights the shift to flat structures where CEOs engage directly with teams, accelerating innovation and boosting morale.

Sources:
Business Insider
Updated 42m ago
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Sources: Business Insider
Startups are increasingly ditching middle managers in favor of flat management structures to accelerate decision-making and improve productivity.

Big Tech companies such as Microsoft, Amazon, Meta, and Google have led this trend by removing layers of management. This shift allows CEOs to work directly with individual contributors, enabling faster key decisions and more efficient software delivery.

One insider noted, "He said he witnessed how middle managers allowed fiefdoms to thrive and slowed down productivity." These fiefdoms create silos that hinder collaboration and morale, with the insider adding, "This is a management fiefdom scenario at its worst, and it negatively impacted morale."

By flattening the hierarchy, startups aim to eliminate these bottlenecks, fostering a more agile and responsive environment. This approach not only speeds up workflows but also enhances employee engagement by reducing bureaucratic overhead.

The flat management model is becoming a hallmark of innovative startups seeking to stay competitive in fast-moving markets, proving that fewer managerial layers can lead to better outcomes.
Sources: Business Insider
Startups are increasingly adopting flat management structures, eliminating middle managers to speed decision-making and boost productivity. This approach, favored by tech giants like Microsoft and Amazon, helps avoid management fiefdoms that hinder morale and slow progress, enabling CEOs to work directly with individual contributors.
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He said he witnessed how middle managers allowed fiefdoms to thrive and slowed down productivity.
Unnamed Industry Observer
Business Insider
Key Facts
  • Big Tech companies such as Microsoft, Amazon, Meta, and Google have been actively trying to remove middle managers to streamline operations.Business Insider
  • Middle managers were found to allow fiefdoms to thrive, which slowed down productivity and negatively impacted morale.Business Insider
  • Startups have adopted flat management structures where CEOs work directly with individual contributors to speed up decision-making and product delivery.Business Insider
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