Sales & Marketing Management has an excellent article out titled Break the Bureaucracy. The gist of the article is the revenue differences between companies that micromanage their team vs. companies that empower their team (especially sales).
First, an intuitive point from the author:
The result of this micromanaging? Young hires felt they got no respect and so returned no loyalty, Swanson remembers. Within 18 months, he and 10 other entry-level analysts had quit.
This point cannot be overstated. The younger generations greatly prefer a more horizontal org chart with less hierarchy. The example in the article describes how this analyst working for a bank (well known for multiple layers of management) had to deal with 3 layers of management monitoring his work. Is it any wonder he left for a new opportunity?
Companies that reported direct monitoring and close supervision, and that did not create a trusting atmosphere, were more likely to have lower average revenue growth, lower profit and higher turnover than companies that facilitated self-management and created an emotionally connected workforce.
“Emotionally connected” is not clearly defined within the article, but I think you get the idea. Empowering managers are going to be in great demand over the next couple of decades. One critical facet of these managers will be their ability to manage a remote team. Telecommuting is rapidly expanding and someday will become a standard practice in most companies. A manager’s ability to coach, motivate and hold people accountable using remote techniques is becoming a needed skill in today’s business world.