Weak middle management limits growth to 100-150 billion VND/year.
Most middle managers in small and medium-sized enterprises fail to provide the necessary support and trust to founders, leaving them feeling isolated. Why is that?
Let’s examine this from our perspective:
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Lack of Financial Responsibility Just like a child who hasn’t left their parents’ embrace, we tend to overestimate our knowledge and abilities. True learning and growth occur when we take responsibility for financial decisions and suffer the consequences of our mistakes. When middle managers aren’t held accountable for financial outcomes, they remain stagnant, akin to high school dropouts. Consider Vingroup, which willingly accepts significant financial losses to foster personal growth among its managers.
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Not in the Driver’s Seat Those who aren’t responsible for steering the vehicle (achieving goals) and navigating obstacles (risks and challenges) often lack a sense of direction. By shielding middle managers from responsibility, we hinder their growth and create followers instead of leaders. Challenge them to create concrete plans for achieving sales targets and controlling costs to develop their planning, coordination, and organizational skills. Micromanagement creates a breeding ground for mediocrity.
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Selecting People, Not Developing Them While we can’t fundamentally change someone’s personality, we can choose individuals who align with our values and energy. Prioritize:
- Respect for differences
- Proactive problem-solving
- Efficiency and quantifiable results
- Effective communication and feedback
- Dedication to specific goals It’s easier to select the right people than to change their mindset. It’s better to move slowly and hire the right people than to rush and deal with the consequences of poor hires.
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Fear of Information Deficiency During the early stages of a startup, optimizing processes, from organizational structure to email etiquette, is crucial. Middle managers often withhold information, fearing they’ll burden founders. Reassure them that you’re willing to provide guidance and support. Once they’ve successfully completed a task under your guidance, they should be able to handle it independently.
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Unaligned Expectations and Compensation Compensation should be commensurate with the value delivered. If expectations exceed compensation, it’s essential to have open conversations. For lower-paid employees, expectations should be realistic, and their potential departure should be anticipated. Lower expectations can mitigate disappointment.
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Swift and Concise Reporting As a company grows, information can become fragmented. If middle managers lack strong analytical and problem-solving skills, they may fail to identify and report critical issues. Carefully assess their capabilities before delegating significant responsibilities. Adding more layers of management can hinder decision-making and information flow.
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Standardizing Success Documenting successful processes and training new employees is often a challenge for middle managers. This responsibility typically falls on founders, even in mature companies.
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Internal Communication and Dissemination Effective communication is essential for disseminating policies, announcements, cost-cutting measures, product launches, credit policies, and more. Poor communicators can lead to misunderstandings, delays, and potential risks. Sales experience doesn’t necessarily translate into strong communication skills.
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Recruitment and Talent Acquisition Delegating recruitment to middle managers can be risky. If a promising candidate is turned off by a poor interview experience, it can negatively impact the company’s reputation and future hiring efforts. Invest in a strong recruitment process to attract top talent.
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Coaching and Mentoring Many middle managers lack the ability to train and mentor their team members. This can lead to knowledge silos and limited growth opportunities. Effective coaching involves various aspects, from initial onboarding to ongoing feedback and mentorship. Those who aren’t naturally inclined to mentor others should reconsider their suitability for leadership roles.
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Data Analysis and Reporting Middle managers often struggle with data analysis and reporting, hindering their ability to identify trends and make informed decisions. Without strong analytical skills, founders may be deprived of valuable insights.
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Balancing Specialization and Generalization Executive roles require a blend of technical expertise, management skills, and strategic thinking. Middle managers who are too specialized may lack a broader perspective, while those who focus solely on management may neglect operational details. Striking the right balance is crucial for effective leadership.
Equitix currently offers the following in-depth training courses for business owners:
a) Course 01: Finance
6-8 sessions
b) Course 05: Business Operations
4-7 sessions
c) 1-on-1 Finance Consulting Evenings (12-16 sessions)
Fee: Customized pricing based on individual needs.
d) In-house Professional Training for Middle Management with a Focus on Finance and Cost Control
Customized pricing based on individual needs after a 1-on-1 consultation.
Ps: A 90-component competency dictionary for managers.
- Western-style Thinking and Work Ethic
- Professional Expertise and Process Development for Frontline Staff Training
- Management and Leadership
- Governance and Strategy
10-Year Development Roadmap