Why Your Business Has Too Many Managers — And What It’s Costing You

12 Jun, 2025

6 min read

  • Insights
Sand timer running out

Let’s get one thing straight: most businesses don’t need more managers. They need better ones. And in many cases, they actually need fewer.

That might go against everything you’ve been told about how to grow a business, but it’s the truth an increasing number of high-performing companies are starting to accept — and it’s changing the way they lead, structure, and scale.

Because when something goes wrong — when teams underperform, when targets are missed, or when growth slows — what’s the default response?

“We need more oversight.”
“We need to hire another manager.”
“We need someone to keep an eye on things.”

But here's the inconvenient truth: more managers don’t fix broken performance. They often create it.

The Management Bubble: Bloated, Expensive, and Ineffective

We are living through a quiet crisis in modern business. It’s not about the economy, or AI, or remote work. It’s about managerial bloat — the outdated idea that growing a business means stacking more layers of leadership between the people doing the work and the people who started the company.

Here’s what that actually leads to:

  • More meetings, fewer decisions
  • More process, less progress
  • More oversight, less ownership
  • More cost, less impact

If you're running a small or mid-sized business, this bloat is deadly. It slows everything down, increases payroll pressure, and puts distance between the work and the people responsible for it.

And if you're a large organisation, it's even worse. You create silos, kill accountability, and wonder why your transformation initiatives stall halfway through the org chart.

The Real Problem: We Don’t Teach Managers to Manage

Let’s be honest — most managers are winging it. They were promoted because they were good at their job, not because they had any training in how to lead people. Now they’re stuck in the middle, under pressure from above and underwhelming results below.

We expect them to:

  • Handle performance issues
  • Motivate teams
  • Deliver strategic goals
  • Translate vague executive language into real action
  • Keep morale high and turnover low

All without giving them any real tools, structure, or support. That’s not leadership. That’s punishment. And then we wonder why performance doesn’t improve — so we hire another manager to “help.”

Controversial Take: Most Companies Could Cut 30% of Their Managers Tomorrow

And the business would probably run better. Sounds harsh? It is. But it’s also true. When managers are equipped properly — with the right tools, visibility, and confidence — they can lead larger teams, solve more problems early, and build high-performance cultures without needing layers of micromanagement behind them.

What you get is:

  • Leaner structures
  • Better team dynamics
  • Faster decisions
  • Lower cost
  • Higher engagement

And ironically, the managers who are worth keeping? They thrive in this kind of environment — because they’re finally able to lead instead of babysit.

The Hidden Killer of Business Strategy: Ineffective First-Line Managers

Every CEO loves to talk about vision. Transformation. Innovation. Culture. But guess what? Your strategy doesn’t fail because of a lack of vision. It fails because the person managing six customer service reps has no idea how to bring it to life.

Top-down initiatives are only as good as the bottom-up execution. And if your first-line managers — the ones closest to the work — don’t know how to lead change, interpret strategy, and get buy-in from their teams, it’s game over.

What happens instead?

  • Strategic initiatives stall
  • Employees get mixed messages
  • Senior leaders lose trust in the process
  • Culture change fizzles into “just another HR thing”

Fixing this doesn’t require more managers.

It requires better ones.

What the Smartest Companies Are Doing Differently

The most forward-thinking businesses — from fast-moving startups to global giants — aren’t just trimming the fat. They’re redesigning leadership from the ground up.

Here’s how:

  1. They stop promoting for performance and start promoting for potential.Being great at the job isn’t the same as being great at leading others to do it.
  2. They give managers real tools, not fluff.No more generic seminars. Just simple, real-time systems that help managers lead effectively every day.
  3. They make performance visible.Teams aren’t managed by opinion — they’re managed by data. Everyone knows where they stand.
  4. They develop leadership in context.Growth happens on the job, not in some disconnected training room.

They build cultures of ownership, not control.Good managers develop people, not direct them every step of the way.

The Result? Fewer Managers. Higher Impact. Lower Cost.

Here’s the kicker: when you do this well, you don’t need to keep hiring more managers as you grow. Why? Because your existing ones can:

  • Lead larger teams without burning out
  • Handle problems without escalation
  • Deliver results without constant reminders
  • Coach instead of correct

And teams under them? They become more engaged, more autonomous, and more capable.

You don’t just save on management headcount — you gain multipliers at every level.

Data Doesn’t Lie: Visibility Creates Accountability

Here’s another reason the “fewer managers” model works: visibility. When performance is made visible — not in spreadsheets buried in HR but in day-to-day tools managers actually use — accountability soars.

You stop relying on gut feel or subjective feedback. You start managing based on:

  • Leading indicators, not just lagging results
  • Real-time progress, not quarterly reports
  • Clear expectations and simple systems everyone understands

Suddenly, underperformance becomes something managers solve — not something they hide.

Final Word: Don’t Be Afraid to Lead With Less If your gut instinct is still telling you “we need more managers,” ask yourself this:

Do you need another person in a middle management seat — or do you need your current managers to actually manage?

There’s a growing wave of businesses who are learning to lead lean — and watching their results explode as a result.

They’re slashing hierarchy, investing in clarity and capability, and seeing better performance from fewer people.

You can, too.

The question is: Are you willing to challenge the status quo?

Because if you are, we’ll show you exactly how to build a management structure that’s:

  • Leaner
  • Smarter
  • More cost-effective
  • And built to scale

Ready to lead better — with less?

Let’s talk. You might be one good manager away from never needing to hire another.

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