How has the role of middle manager evolved and what challenges does this group face as they prepare to achieve better results for their company? As a result of significant changes in technology and marketplace dynamics, today we are seeing a fundamental shift in the role of the middle manager that will require a new mindset and new skill sets going forward. This was one of the key issues discussed at the 2005 Enterprise Learning Strategies Conference, presented by the Conference Board and sponsored by Duke CE on February 8-9 in New York. At the conference, Michael Canning, Duke CE Managing Director, discussed several important trends that connect directly to the challenges managers are facing today.

Information Technology
Information technology has transformed the way managers work due to the amount, speed and availability of data. Access to information has shifted more power to customers and suppliers. Access to data alone is no longer a source of strategic advantage for companies. It is the ability to make sense of that data and gain insight that matters. Advances in information technology have caused us to be more closely and more frequently connected to one another through the use of cell phones, blackberries, etc. Managers are more connected than they have ever been and, because of 24/7 communication, the transition between work week and weekend is less distinct.

Convergence
Industries once seen as separate are now seeing multiple points of convergence. For example, digital technology has led to a convergence of sound, image, text, computing and communications. The boundaries between industries have been blurred, resulting in new possibilities and opportunities. The problem is that it isn’t always clear what managers should do with these new opportunities. Managers have to be prepared to adapt. Their role is to observe, learn from experience and set direction dynamically.

Globalization
With globalization, assets are now distributed and configured around the world to serve customers and gain competitive advantage. Even companies that consider themselves local interact with global organizations. Due to globalization, there is more reliance on fast-developing regional centers of expertise. For example, computer programming in India and manufacturing in China. This means that middle managers are interacting with and coordinating the efforts of people who live in different cultures, and may be awake while the managers are asleep. The nature of leading has changed as it becomes more common to partner with vendors and work in virtual teams across regions.

Regulatory Environment
The three forces described above are causing shifts in the regulatory environment. Many industries are experiencing more regulation as a result of these changes, while a few are experiencing less. Even within a company, it is common to experience more regulation in some areas, while experiencing less in different parts of the organization. Where regulation has increased, companies are experiencing more scrutiny in regard to their actions. This leads to a demand for more accountability and a greater desire to clarify boundaries and roles. In the wake of all of this change, there is more ambiguity concerning the rules and how to operationalize them. For example, U.S. companies and accountants continue to sort through new opportunities as a result of the Sarbanes-Oxley legislation. Managers sit where regulations get implemented, and are a critical force in shaping how companies respond to the shifts in environment.

Leading from the Center
In fact, all of these changes have implications for middle managers. Their role has in effect evolved from managing in the middle to leading from the center. Top leadership can no longer have a complete picture, because the environment has more of everything: more information and connectivity, a faster pace, a dynamic competitive space, greater geographic reach, better informed and connected customers and suppliers, and shifting legal rules of the game. No small group can process the implications, make thoughtful decisions and disseminate clear action steps. The top of the organization needs those in the center to help make sense of the dynamic environment.

Strategy doesn’t arrive in a neat, clear package as it may have in the past. The connection between strategy development and strategy execution becomes less linear and more interdependent and, therefore, managers in the center become pivotal actors. They need to be prepared to make key decisions and interact with others to achieve results.

The notion of the middle of an organization typically conjures up a vertical image depicting managers in the center of a hierarchy. This mental image carries with it a perception of those managers as gatekeepers – controlling the pace at which information or resources flow down or up and sometimes causing blockages. It appears to be simple and linear.

However, managers now find themselves Leading from the Center of a matrix, and as a node in a network or multiple networks. As depicted in the figure above, this new view of the center conjures up images of centrality, integration, connection, and catalyst. Managers are in the center of the action, not the middle of a hierarchy. When you overlay this connected view on the traditional vertical notion, it produces some interesting tensions, trade-offs, and opportunities. A manager’s formal authority runs vertically, but the real power to achieve results stems from their ability to work across all levels and boundaries. Managers in the center today need to both understand their changing roles and master the new skills needed to effectively navigate this matrix and to achieve the best results for their organization.