Does your team need a manager? Why leadership still matters — even in flat, autonomous teams.
With flat organizational structures and autonomous teams, people often question the idea of leadership. So are leaders overrated?
Before I share what I’ve learned from 20 years of leading teams and guiding leaders, let me tell you a bit about operational efficiency. You’ll understand why in just a minute.
Operational efficiency
Operational efficiency is essentially doing more with less. It’s about optimizing your resources (time, money, people, materials) to achieve your desired outcomes while minimizing waste. Think of it as a well-oiled machine with all parts working together seamlessly.
Why it matters
It minimizes waste, which means more profits
It maximizes output, because efficiency also means finding the most efficient ways of doing things.
It makes you more competitive, because you can adapt quickly and do the right things at the right time. And customers usually love that.
It makes you more resilient, because optimized systems can absorb unforeseen challenges and recover faster.
So once again, operational efficiency is about doing more with less by optimizing resources and minimizing waste. This translates to increased profits, maximized output, enhanced competitiveness, and greater resilience. In essence, it’s like having a well-oiled machine, where every part works together seamlessly.
How do we achieve Operational Efficiency?
Short answer, you achieve this by leadership.
Because leaders set the tone, always. They find the right people, they build the right teams, they create the right process and eventually they create the right products.
In other words, teams need leaders to be more efficient.
However, the question always comes down to implementation. Leaders are those who can enable people to be efficient, motivated, innovative and collaborative.
By making the right structure and processes they can design the environment where people achieve operational efficiency. By making the wrong structure or processes, they can block even the most talented people.
There’s an example of good implementation with Navy SEALs. They have an approach of hierarchy fluidly. When they’re on the ground, there’s a clear chain of command. When things need to get done, no one argues. When they’re back to the base to debrief, everybody’s equal and has a voice. They share ideas.
The conclusion is:
Operational efficiency is a priority for every team and business because it directly impacts their output. To enhance the likelihood of maintaining or improving operational efficiency over time and during scaling, every team needs effective leadership.
So, are leaders overrated? I don’t think so. In my experience, good leaders empower great teams to achieve great things.
P.S.
Yes, if your whole team is nine people and you’re actively running it, you don’t need to hire a manager — yet.