Key Takeaways
• Middle managers are uniquely positioned to link employees, customers and suppliers for value creation.
• Purpose and contribution are major drivers for Gen-Z attraction and retention.
• Zero-distance philosophy places managers as enablers and customer-centric translators.
• AI value realisation requires managerial ownership and behavioural enablement.
Core Message
Middle managers convert organisational purpose into real-world stakeholder value by bridging energy, capability and customer-centric delivery.
Giving Middle Managers the skills and knowledge to add value to the organisation, motivate and inspire employees and deliver first class service to customers. and ensure that AI delivers the fullest impact is a role to be cherished, not abandoned. Senior management’s role is to determine the strategic direction and to charge middle managers with delivering that.
How to deliver value
Middle managers can drive real value for their organisations by focusing on driving results for a variety of Stakeholders. They are ideally positioned by their closeness to them, which is often lost higher up the chain. They are ideally positioned to ensure that employees are trained and engaged to deliver to the needs of customers, both internal and external and build vital links to suppliers, again, internal and external. By delivering great value to these stakeholders, shareholders will be rewarded handsomely.
The ‘Zero Distance’ concept, as developed by Haier , is the concept that can help the approach of focusing on stakeholders gain credence in the organisation. This concept needs to be owned at the highest levels in the company for the philosophy to be implemented. The Zero Distance concept ensures that employees and customers are as close as possible. We see too often examples of companies where systems override the importance of the customer. Now, it is possible to say – then why have middle managers, as Haier suggests ‘Minimum Hierarchy’. But the closeness of the managers to ensure employees are coached, trained and developed and thus motivated to ensure delivery of the fullest value, ensuring consistency and a seamless approach outweighs the hierarchy. In this way, Middle Managers become facilitators for the desired and best practice.
Unlocking the Real Value of AI
It is becoming clear that, to drive real value from AI, its installation needs to run on deep grooves within an organisation. A clear understanding of where the value will come from and the skills necessary to deliver this are key to success. Middle managers are at the front end of this. Without their ownership, the implementation will not deliver the value anticipated.
The importance of the role of the Manager in this new organisation cannot be overstated. Any new, junior employees recruited will inevitably be Gen Z. Gen Z seek purpose and impact and want to know that their work matters who have expectations that the company they work for will deliver an environment and a role where they will feel the value they are providing and that it is to the good of that person, a customer either internal or external. They expect their organization to be a force for good. How inspiring for their managers to be able to impart the training, coaching that will allow these employees to know they are adding real value. The energy and motivation that comes from this is immense. (to use a common analogy, too often lower-level employees see themselves as bricklayers, not builders of cathedrals). The ability to serve customers well delivers huge motivation and commitment.
Delivering Value for Shareholders and Society
Additionally, managers can ensure that better relations and results are delivered to the organisation and to its suppliers, an often-overlooked area where focus has been lacking. Ideally, these relationships should not be just transactional, but with both sides having a clear understanding of the added value that closeness can deliver. Recently, we’ve seen supply chain issues arising from cyber-crime and the implementation of tariffs. Closeness and common understanding can help mitigate the potential impact.
To those that say ‘ESG is dead, don’t bother with this stakeholder stuff’, that’s not the case. In a recent article from Wharton , there is real evidence in the USA, that those Municipalities who focus on ESG are able to issue their bonds at much more favourable rates than those who do not. While the article does not suggest that the same is true for quoted companies on Stock markets, the inference is clear – investors deliver to those who deliver them value. It is possible, in my opinion, that for some companies, ESG was an excuse not to deliver value. The reality is, it needs to be an and – Deliver ESG and first-class results. That way shareholders and society win.
Companies that use their middle management group effectively and wisely can do this!
