Middle managers in Swedish listed companies being pushed to be stronger and riskier decision makers.
Tuesday, 08 October 2013
Hard economic times call for harder resolves. This is what economic
schools claim to teach business graduates: How do you handle stressful
times or how do you remain calm during a stressful time. We here on
this network ask: how do you maintain your position as middle manager
during turbulent economic times?
During a period like this which is also influenced by faster product to
the market, increased customer demands, high competition, price wars,
quick decision making etc., management decision has to be fast, bold,
and risky by a strong leader. This is what many Swedish listed
companies are going for now, ditching the slow Swedish censuses
bureaucratic decision-making style.
may look rosy on paper but many Swedish companies are operating under
stressful times right now and the middle managers are the ones taking
the heat. In three of four listed companies, there is growing reduction
in the number of middle managers blamed on the quest for efficiency
savings. Those who are left are thus left with a pile of work and more
additional powers to deal with that work. This is stressful, according
to a recently concluded survey.
Listed companies' top managers feel more and more frustrated with slow
decision-making. Now, most are departing from the traditional Swedish
consensus culture and are introducing a top-down structure with fewer,
but stronger middle managers.
Four out of five of the listed companies are considering it
appropriate to establish a more effective internal decision-making
system. Furthermore, three of the four feel that they should accomplish
this by cutting down on the number of middle managers.
Some 85 percent of companies also think that they should give increased
powers to managers and employees to make their own decisions.
This is the conclusion from a survey "Säljindikatorn" translated, "Sell
Indicator" which is conducted twice a year by the training and research
firm PMP "Marknadskonsult" in English PMP Marketing consultant. The
survey is based on telephone interviews with sales and marketing
managers of some 100 listed companies on the Stockholm Stock Exchange.
"The need for rapid decisions is increasing faster. In the
manufacturing industry, many products are having a very short life
cycle from 20-25 years to perhaps 5-8 years. Costs for the
development and commercialization must be down, increasing demands
means effective decision-making, "says Mikael Julher, CEO of PMP
He believes that many listed companies still suffers from financial
crisis of 2008 and savings measures that were introduced then still
"I have heard many stories of middle managers who do not have the
mandate to take decisions on little things such as a trip between
Stockholm and Malmo, "said Mikael Julher.
A word that is emphasized in the survey is "courage." Nine of the ten
listed companies indicates that it is of high priority to employ bolder
and courage managers - risk takers.
"Many employees are fed up with managers who draw things on the back
burner. They feel constrained by managers who cannot take a decision in
a few weeks without letting process bounce around in the group for six
months or a year, "says Mikael Julher.
by Scancomark.com Team