Middle managers are the keys to business transformation success

“While senior executives define the strategic direction, middle managers are the ones who translate that vision into practical goals,” says Shane O’Neill, director of business transformation at PwC Ireland.

“Executives can sponsor change, but it is middle managers who make that change a reality. As organisations navigate the complexities of AI adoption and continuous business reinvention, the role of the middle manager has never been more critical.”

David Cass, director at Parva Consulting, agrees. “Middle managers are the oil in the engine,” he says.

“They know the day-to-day operations of the business better than anyone else. They own the institutional knowledge of why things are a certain way in an organisation that c-suite executives often don’t possess. They know where the opportunities are, what can and can’t be done and how to navigate the subtleties of internal politics. Critically, they also have credibility with front line staff which means they are ideally positioned to drive the change process and create new value opportunities for the business.”

Given that all business transformations are, in essence, people projects, underestimating the strategic role of middle management in the process is a serious mistake. Rather than being treated as an afterthought, drafted in after the strategy has been agreed by senior management, the earlier they are involved, the more likely the transformation is to succeed.

There is a tendency to celebrate heroic and superior leadership of CEOs and top teams when it happens, while failing to appreciate the impact and agency of middle managers, according to Professor Brian Harney, head of Work Psychology Strategy (WPS) at DCU.

“Research shows that middle managers play an outsized role in organisational performance,” he says.

“The basis for this impact doesn’t come from formal positions on an organisational chart, but from proximity to employees, established networks, experience, reputation and an ability to influence upwards.

“Middle managers hold a unique role based on their access to top management coupled with their deep knowledge of how the business works. Renowned strategy scholar Henry Mintzberg speaks of building organisations ‘from the middle out, through groups of middle managers who bond together and drive key changes in their organisation’.

“It’s important to remember that most transformation efforts don’t fail as a result of technological or systems issues; they are people failures,” Harney adds. “Middle managers are the catalyst at the heart of effective transformation, serving as the formal interface between top leadership intent and employee action. They facilitate co-ordination and mediation across units, geographies and time zones. More informally, they serve as a critical node in the network and flow of organisational desires, data and deliberations.”

The traditional view sees middle managers as mere ‘sense-takers’ readily accepting a vision developed elsewhere and translating it in line with pre-defined criteria, but Harney believes that significantly understates the critical part they can play in the transformation process.

“In practice, middle managers are ‘sense-makers’ rather than ‘sense-takers’,” he says. “They are central to assessing and evaluating the basis for change. They are also ‘sense-givers’ in that they set the tone, agenda and role-modelling for employees to follow. Overall, they should be seen as a strategic resource critical to enabling and sustaining change as they can appreciate both the macro context of strategy and change, but are equally familiar with the minutiae of day-to-day delivery of objectives and how they are achieved.”

Credibility and trust are hugely important in making the transformation vision a reality, according to O’Neill, and that’s where middle management comes into its own. “Middle managers bring the required credibility, context and trust to transformation projects,” he says.

“Major transformations, especially those involving disruptive technologies like AI, inevitably create a sense of apprehension. In these circumstances, employees don’t look to executives for reassurance; they look to their direct managers.

“Effective middle managers have the difficult one-on-one conversations about what the future means for individual careers and provide the empathetic coaching required to build team confidence. Without this human element, a transformation programme is just a plan on paper but, with it, that change can become a reality.”

Indeed, even where they are not directly involved in formulating the vision, the role of middle management goes beyond communicating strategy to the shop floor, championing the proposed change and managing outcomes. Their position at the coal face of operations means that they can provide timely insight and feedback up the command chain on which aspects of the change are working and, critically, which aren’t. Their direct day-to-day involvement also enables them to quickly identify and fix structural bottlenecks that might otherwise incur significant time and financial cost for the business — which is another argument in favour of involving them in strategy formulation from the outset.

Despite the pivotal role they play in driving the business transformation agenda, middle managers are often undervalued by those further up the executive chain which can actually prove costly for an organisation.

“Too often we see cases where middle management are excluded from the initial strategy development process,” Cass says. “They are informed but not involved in developing the vision. This is a mistake and could be an indication that their contribution is undervalued.

“Apart from the impact on the strategy itself, its practicality and chances of success, it could also foster apathy and even resistance to the project which could significantly hamper its chances of success. The worst-case scenario is that they walk. The best people always walk first in these circumstances. Good people know their worth and, if they feel under-valued, they will simply go somewhere else where they feel appreciated.”

Harney also highlights the dangers of under-valuing middle managers.

“Middle managers are often referred to as ‘the missing middle’, frequently sidelined to the role of executing a given strategy,” he says.

“Their potential and impact are often ignored or downplayed and yet they are critical agents who can bend, break or pay lip service to change. This can dramatically impact the cascade of information and foster change cynicism as opposed to engagement. They are the day-to-day evidence of change in action and, if they do not role-model, others are unlikely to buy into the process.”

O’Neill agrees. “When middle managers are sidelined, transformations can stall very easily,” he adds.

“The best plans fall apart simply because no one explains what the change means to those impacted. As a result, resistance quietly builds, momentum slows and employees default to old habits. Transformation doesn’t happen in boardrooms, it happens on the ground. If middle managers are not engaged, uncertainty can spread quickly. Instead of driving the change, they end up shielding their teams from it.”

Clear communication and strong people skills are key attributes that all good middle managers need. Historically tasked with cascading direction downwards and reporting metrics back up, they now require an additional suite of ‘soft’ skills.

“Today they must play a far more strategic role and recognise that sustainable change is impossible without people development,” O’Neill says.

“The best middle managers don’t see ‘performance’ and ‘people’ as a trade-off. Instead, they view people development as the vehicle through which performance is achieved. As AI reshapes roles and ways of working, human skills are becoming more valuable, not less.”

Good middle managers also need to be agile and have a clear understanding of what the future of the business will look like but be comfortable with ambiguity as the situation evolves, according to Cass.

“They should be able to give and take feedback constructively from either above or below and foster a supportive environment for staff who may be uncertain about their roles post transformation,” he stresses.

Cass believes ambition is another important factor.

“Change brings opportunity and they need to be able to see this as a chance to progress rather than something to resist,” he adds.

Good middle managers should also show good emotional intelligence.

“Effective middle managers draw on emotional skills to reinforce a culture of creativity, problem solving and resilience,” Harney says.

“This creates followership, engagement and helps staff navigate what might feel like a period of uncertainty successfully.”

The most successful organisations treat middle managers as critical strategic advisors and engage them early in the strategy development process. As businesses navigate a succession of challenges in a fast-changing landscape, early involvement of middle management is no longer best practice — it’s critical to the overall success of the transformation programme.

While early engagement in strategy development is crucial, it’s also important that middle managers are fully supported throughout implementation as well. This requires top management to be transparent and honest in their communications and to be willing to take appropriate action in response to any feedback received.

“Expectations should be realistic and the pace of change managed carefully,” Cass says.

“There is no point bombarding middle managers with additional work if they don’t have the time or requisite skills to do it. There is no point adding to already full plates. Proper training and other supports need to be provided to ensure that they are equipped to get the job done.”

That also includes giving them the power and autonomy to fulfil their responsibilities, according to O’Neill.

“Too often managers are expected to drive change without the authority, budget or training to deliver,” he says.

“They need actual support and, crucially, the time to do it. Ultimately, senior leaders must treat middle managers as trusted partners, not just people who pass on their instructions.”