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Reprint: R1204H If senior executives are feeling ever more pressed for time, why would they add more to their plates? It might sound counterintuitive, but research by Booz & Company’s Gary L. Neilson and Harvard Business School professor Julie Wulf shows that over the past 20 years the CEO’s average span of control, measured by the number of direct reports, has doubled. It stands at almost 10 today. This gives fresh relevance to a perennial question for senior leaders: Just how much should they take on? The authors suggest five areas to consider: Where are you in the senior executive life cycle? How much cross-organization collaboration is required? How much time do you spend on activities outside your direct span of control? What’s the scope of your role? What’s the best mix of roles for your team? A diagnostic tool provides guidance for leaders considering these questions and can help them estimate their optimal span of control. The issues explored are ones many senior executives—not just CEOs—should revisit throughout their careers. The best leaders, the authors show, stay mindful of the evolving demands of their job and continually tweak their team as they go.
Increased geographical and market complexities demand new points of view in the top team. CEOs are increasingly engaged in the business, and more are playing the span-breaking COO role themselves. CEOs are changing the leadership mix:Functional leaders account for 80% of the increase in positions reporting to the CEO. And the COO position is fading. By 1999 just 45% of Fortune 500 companies had a COO, and the figure continues to drop. Executive development vehicles have expanded:New development options offer ways for leaders to collaborate across the organization. More functional leaders are taking on elements of general manager roles. If senior executives are feeling ever-increasing pressure on their time—and few would suggest that’s not the case—why would they add more to their plates? It seems counterintuitive, but according to our research into C-level roles over the past two decades, the CEO’s average span of control, measured by the number of direct reports, has doubled, rising from about five in the mid-1980s to almost 10 in the mid-2000s. The leap in the chief executive’s purview is all the more remarkable when you consider that companies today are vastly more complex, globally dispersed, and strictly scrutinized than those of previous generations. A version of this article appeared in the April 2012 issue of Harvard Business Review.
Direct reports are employees who, as the term implies, report directly to someone who is above them in the organizational hierarchy, often a manager, supervisor, or team leader. Another term for direct reports is subordinates. The person in charge of direct reports is responsible for assigning them work and monitoring performance. Direct reports may themselves have direct reports. For example, a sales manager may report directly to a director of sales and also be in charge of a team of sales representatives. The more direct reports, the more employees a manager or supervisor has to monitor, motivate, and mentor. The span of control, or number of direct reports someone has, will depend on several factors, including:
In a 2016 report by Deloitte, the average number of direct reports at U.S. companies was 9.7; this number is slightly higher at large companies, where supervisors have an average of 11.4 direct reports. By: Fadzai Danha | Posted On: 16 November 2020 | Updated On: 7 August 2022 | Views: 18910 Almost no organizational question is asked more often than ‘what is the ideal span of control?’ Evaluating the span of control is a good health check for all organizations. By visualizing spans and layers, organizations can quickly see where there might be opportunities for improvement or where the problems lie. Simply put, a span of control refers to the number of subordinates under the manager’s direct control. The span of control refers to the number of subordinates that can be managed effectively and efficiently by supervisors or managers in an organization. As an example, a manager with five direct reports has a span of control of five. Too many or too few direct reports is a good way to view how efficient an organization is as long as it is looked at in the context of the company’s organizational structure. How many direct reports can a manager have?When looking at the span of control there is no general optimal number for different companies. This is because the nature of work, size of the organization, and the attention each subordinate requires need to be considered. For example, in a Call Center, a manager can have over 100 direct reports, while executive functions – with high degrees of collaboration and interaction – could productively tolerate no more than three or four direct reports. So the nature of the work being performed, and how much attention it requires should govern the assignment of personnel to a manager, and not some industry ideal goal. Related: The Ideal Span of Control What is the ideal span of control?Ideally in an organization, according to modern organizational experts is approximately 15 to 20 subordinates per supervisor or manager. However, some experts with a more traditional focus believe that 5-to 6 subordinates per supervisor or manager are ideal. In general, however, the optimum span of control depends on various factors including:
The Concept of Span of ControlIt is important to look at the concept of span of control in the context of the organizational structure levels of hierarchy. There are 2 factors in particular that are of interest, that is the width and height of the organizational structure:
Related: Types of Span of Control Flat organizations have a ‘wide’ span of control and Tall organizations have a ‘narrow’ span of control. While there are pros and cons with both tall and flat structures, a company’s structure must be designed to suit the business (the customer and markets) in a way that fits with the workforce’s capability. Tall span of controlAdvantages
Disadvantages
Wide Span (Flat structure)Advantages
Disadvantages
Frequently Asked Span of Control Questions1. How can I calculate the span of control?The span of control is the number of people reporting to each manager. We calculate this number according to the number of heads managed, whether full-time or part-time. So, someone managing 12 part-time workers still has a span of control of 12 and not the equivalent of managing six full-time employees. 2. What is the average span of control for my whole organization?This is useful as a starting point, but it’s only a stepping stone to comparisons with other organizations, in the same industry for example, or for making departmental comparisons internally. Ideally in an organization, according to modern organizational experts is approximately 15 to 20 subordinates per supervisor or manager. This forms the basis for a manageable span of control . However, some experts with a more traditional focus believe that 5-6 subordinates per supervisor or manager are ideal.The average span of control is measured using a ratio of the number of managerial nodes and the total population.3. What is the trend with a span of control?The trend in recent years has been to move toward wider spans of control to reduce costs, speed decision-making, increase flexibility, and empower employees (RfB, 2020). However, to avoid potential problems of wide spans of control, organizations are having to invest in training managers and employees and technology enabling the sharing of information and enhancing communication between and among managers and employees (RfB, 2020). However, over decades of supporting the world’s leading organizations in their redesign experiences, McKinsey has found that there is no single magic number that fits all types of managers and the work that they do. Chasing one single number can reduce effectiveness (EPM, 2018) 4. What are the direct span and indirect span of control?A direct span of control refers to the number of direct reports a manager supervises. An indirect span of control refers to how far up the chain of command a manager's direct reports report to them. For example, if a manager has 10 direct reports, then he or she would have an indirect span of control of 10. The differences in the span of control are that the direct span of control includes the manager's own direct reports while the indirect span of control does not. In most cases, the direct span of control will be greater than the indirect span of control. 5. What are the advantages and disadvantages of a high span of control?High spans of control have several advantages. They allow managers to respond quickly to changing conditions, make decisions based on the best available evidence, and provide opportunities for learning new skills. Middle managers also get to know their direct reports well which makes them better able to support their development. The downside is that managers often feel overwhelmed by the volume of tasks and responsibilities. They may be unable to delegate effectively or manage their time efficiently. In addition, when working at a high level, managers tend to spend too much time trying to understand what others are doing rather than focusing on their own priorities. 6. How does a company determine its span of control?Companies use various methods to determine the appropriate span of control for different situations. Some companies use surveys to find out how many employees report directly to each manager. Others use a combination of interviews, observations, and surveys. Still, others rely on experience and common sense to set the right span of control. Other Factors That May Affect the Span of ControlWhile early discussions of the span of control often centered on pinpointing the optimal number of subordinates, several factors may influence the span of control most appropriate for a given management position (RfB, 2020). Assuming that all other aspects of a manager's job are the same, these factors would likely alter the span of management as follows:
Related: 17 span of control: Facts you need to remember all the time Conclusion The span of control in management has implications for workflow and influences directly the number of subordinates who are assigned to be working under a manager or a supervisor. Thus, a proper span for a manager or a supervisor is important to design the organizational structure and to set direction, and exercise control effectively and efficiently. Fadzai Danha is a consultant at Industrial Psychology Consultants (Pvt) Ltd a management and human resources consulting firm. Phone +263 4 481946-48/481950 or email: or visit our website at www.ipcconsultants.com |