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Leadership

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Managerial competence and organizational inefficiency

How many times a week do you receive and read emails sent to you “just in case”? How many times have you attended a meeting that didn’t concern you at all?
It’s a waste of your time, but more importantly, it’s the first symptom of a lack of managerial competence and improperly assigned responsibilities in your company.

Today’s organizations are facing a serious challenge: 68% of employees believe that the lack of competence of middle managers is a major cause of declining performance (source: Gallup, 2023). Meanwhile, companies with highly skilled managers achieve 21% higher profits than their competitors(McKinsey). How do you build a culture of conscious management that eliminates inefficiencies and drives growth?

Process Mapping: From chaos to clarity

Senior managers often fail to see the connections between departments, leading to losses of up to 30% of work time(Bain & Company, 2022). An example? Siemens, a manufacturing company, used process mapping to reduce its delivery cycle by 40%, eliminating 15 unnecessary steps in the logistics chain. According to APQC, standardizing processes reduces operating costs by up to 25%.

The key tools are BPMN (Business Process Model and Notation), Value Stream Mapping and the RACI matrix, which precisely defines responsibilities. Without them, a company resembles a ship without a map – it’s sailing, but you don’t know where it’s going.

Download the checklist: How to make a mini-CEO out of your managers. (CTA)

Interdepartmental collaboration: How to break down silos?

43% of managers admit that cross-departmental rivalry hinders the company’s goals(Harvard Business Review, 2021). The solution is to introduce cross-department OKRs (Objectives and Key Results), where the goals of different departments are linked. An example? Google uses OKRs to combine marketing and IT goals – for example, “Increase page load speed by 20%” is a common goal for both teams.

Statistics confirm: process-integrated companies achieve 2x faster revenue growth(Gartner, 2023). Collaboration is not a luxury – it’s a necessity.

Translating strategy into operational goals: From vision to daily tasks

According to a study by the Balanced Scorecard Institute, only 5% of employees understand how their work affects the company’s strategy. This is a huge loss of potential. The solution is Cascade Goals – breaking down strategy into goals for each level. For example, if the company’s goal is “Increase market share by 10%,” the sales department’s goal might be: “Acquire 50 new customers.”

3M has introduced a system called “Strategic Storytelling,” where each manager translates strategic goals into concrete examples for his or her team. The result? 35% higher ROI in companies with well-defined KPIs.

Business Awareness: Why do managers need to think like owners?

76% of CEOs believe that a lack of business perspective in middle managers is a major barrier to innovation(Deloitte, 2023). How to change this? Introduce financial analysis workshops, simulation games (e.g., managing a company in a crisis) and mentoring with CFOs.

Managers need to understand how their decisions affect EBITDA, cash flow or margins. Managers have a direct bearing on the value of the business. Without this knowledge, a company resembles a car without a steering wheel – it’s going, but no one knows where it’s going.

Management Framework: From operations to strategy

According to McKinsey, senior managers spend only 13% of their time on strategic tasks – the rest is firefighting. The solution is to implement an ESG(Eliminate, Systematize, Grow) system:

  • Eliminate – automate or remove low-value tasks (e.g., manual reporting → Power BI).
  • Systemize – Standardizing procedures saves up to 200 hours per year per manager (PwC).
  • Develop – delegate operational tasks to teams and leave strategic tasks to leaders.

Fighting inefficiencies: Where are costs hiding?

Organizational drag consumes up to 20% of companies’ budgets(PwC, 2022). Examples of inefficiency include redundant meetings (62% of managers consider them a waste of time – HBR, 2020), duplication of tasks between departments or lack of access to real-time data.

How to change this? Introduce process audits every quarter and create an “efficiency council” from representatives of all departments.

Figures that convince

Companies that invest in managerial training experience a 24% increase in productivity(LinkedIn Learning, 2023). Every dollar spent on developing managerial competencies pays back 7 times(Forrester, 2021).

An informed manager is not a cost, but an organization’s most important asset. Implement development programs based on real data and measure their impact on the company’s KPIs. Only in this way will you build a company that runs efficiently – even without your daily involvement.

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