Optimisation of management margins: Analysis & Strategies

Spans of control play a decisive role in the efficiency of an organisation.

A low span of control leads to a high hierarchical structure, while a high span of control enables flatter, more agile organisations:

Influence of spans of control
Appropriate management spans
Different manager archetypes
Organisational requirements
Our analysis approach
Case study A: Analysis by archetype
Case study B: Analysis by business unit
Key benefits
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Influence of management margins

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"By analysing the management margins, we can quickly gain actionable insights that increase the efficiency and effectiveness of the organisation."

Niklas Flintrop
^{Project Manager}

Appropriate management margins

Various factors are analysed as drivers and limiters in order to determine the optimum range for operating margins. Drivers enable a larger management span, while limiters tend to reduce it. An example of a driver is the level of empowerment that managers can give to their direct reports. In contrast, high task complexity limits the maximum management span.

Different manager archetypes

There are five archetypes of managers who have different optimal leadership spans depending on the distribution of drivers and limiters. These archetypes are tailored to specific organisational needs. For example, Networkers are mainly tasked with communicating with the wider organisation, while Supervisors focus on reporting and monitoring. These archetypes help to define the optimal management span based on the specific requirements of the role.

"Subject matter experts can lead teams with in-depth expertise, while networkers and supervisors have a different focus. It is important to expand the skills of managers through targeted development programmes in order to achieve an optimal fit for the role."

Shirley Aulbach
^{Project Manager}

Organisational requirements

Analysing management spans begins with identifying the current management spans and the roles that managers currently perform. This makes it possible to check whether the current management spans meet the requirements of the archetypes or need to be adapted.

"Personal suitability for the role is important. Different types of people are better suited to different managerial roles."

Philip Semelmayer
^{Associate Principal}

Our analysis approach

An important step is to consider whether the organisation has the right archetypes of managers and whether their leadership spans are optimally aligned. If necessary, the roles of the managers in the organisation need to be revised to ensure that they meet the requirements.

Our analysis includes looking at both the individual archetypes and the business units. This makes it possible to develop targeted measures to optimise management spans and increase the efficiency and operability of the organisation.

Case study A: Analysis by archetype (e.g. all moderators in the organisation)

This approach looks at all managers of a particular archetype to determine whether their current span of control supports their role and the organisational requirements. Depending on the fit, adjustments are recommended to ensure everyone can operate effectively.

Case study B: Analysis by business unit (e.g. all managers in a business unit)

This analysis looks at the distribution of management archetypes and their leadership spans within a business unit in order to find the right mix for the business unit's requirements. It checks whether the current archetype distribution meets the organisational needs and whether adjustments are required.