Ernst & Young has initiated significant restructuring efforts aimed at streamlining operations and reducing costs. This overhaul includes consolidating 18 global regions into 10 “super regions” and notably, reducing middle management layers. The restructuring is set to take effect on July 1, 2025 with job cuts anticipated across various management levels.
This action by EY is not isolated. Other major firms, including KPMG and Deloitte, have also embarked on similar consolidation strategies amid a sluggish consultancy market. Such moves underscore a growing trend where organizations, under pressure to enhance efficiency and reduce costs, are reevaluating the role and necessity of middle management.
The Contagious Nature of Organizational Decisions
Corporate strategies, especially among industry leaders, often set precedents that others follow. When a prominent organization like EY restructures its management hierarchy, it sends ripples throughout the industry, prompting peers to consider similar measures. This phenomenon underscores the contagious nature of organizational decisions, where one firm’s actions can influence broader industry practices.
The Vulnerability of Middle Managers in the AI Era
The advent of Artificial Intelligence and automation technologies has further exacerbated the challenges faced by middle managers. Tasks traditionally managed by this group, such as performance monitoring and reporting, are increasingly being automated, raising concerns about the redundancy of these roles. A report by IQ PARTNERS highlights that roles in tech, analytics, and even creative sectors are particularly susceptible to AI disruption.
Moreover, the perception of middle managers as mere intermediaries has led some organizations to question their value proposition. However, this perspective overlooks the multifaceted contributions of middle managers, including their roles as mentors, culture carriers, and critical links between strategic objectives and frontline execution.LinkedIn+7Harvard Business Review+7McKinsey & Company+7
The Critical Role of Middle Managers
Contrary to the narrative of redundancy, research underscores the indispensable value of middle managers. A study by McKinsey & Company reveals that organizations with a higher proportion of top-performing middle managers experience significantly better financial outcomes. These managers play pivotal roles in fostering collaboration, driving employee engagement, and translating strategic visions into actionable plans. McKinsey & Company
Furthermore, middle managers often serve as the organization’s moral compass, embodying and reinforcing ethical standards and organizational values. Their proximity to both executive leadership and frontline employees positions them uniquely to influence culture and operational effectiveness. Harvard Business Review
Strategies for Middle Managers to Future-Proof Their Roles
In light of these challenges, middle managers must adopt proactive strategies to remain relevant and indispensable:
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- Embrace Continuous Learning: Stay abreast of emerging technologies, especially AI and automation tools, to understand their implications and harness their potential.
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- Develop Strategic Thinking: Transition from operational oversight to strategic contribution by identifying opportunities for innovation and efficiency within the organization.
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- Enhance Emotional Intelligence: Cultivate skills like empathy, communication, and conflict resolution to better manage diverse teams and foster a positive work environment.
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- Lead with Agility: Adapt to changing organizational needs by being flexible and open to new methodologies and processes.
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- Demonstrate Tangible Business Impact: Align team objectives with organizational goals and showcase measurable outcomes that contribute to the company’s bottom line.
Call to Action
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About Netta Jenkins
Netta Jenkins is a distinguished tech CEO and the visionary behind the acclaimed 8-week leadership accelerator, Super Charged Management. As a two-time published author with Wiley, her forthcoming book, “Supercharged Teams: How Every Manager Can Create a Culture of Excellence,” follows her debut work, “The Inclusive Organization,” recognized as a top read in Forbes and amplified by Arianna Huffington to her 10 Million Linkedin Followers.
Netta hosts the Beyond Management™️ LinkedIn leadership web series, powered by Holistic Inclusion Consulting, which has garnered over 10 million impressions. Through engaging, street interview-style content, she fosters meaningful discussions that enhance organizational learning and development, boost brand visibility, and position organizations as thought leaders, driving new customer acquisition and talent recruitment.
A seasoned TEDx and keynote speaker, Netta has captivated audiences worldwide, delivering science-backed insights and strategies with compelling impact. With over 15 years of expertise in global workplace advisory and a LinkedIn following exceeding 200,000, she has been featured in leading outlets such as The Washington Post, McKinsey, Forbes, and Fortune. Her influence earned her recognition as one of the Top 10 Most Influential Black Women in Business to Follow by CIO Views in 2021.
Previously serving as VP of Global Inclusive Strategy at IAC, Netta partnered with brands like Match.com, Vimeo, and Daily Beast. She advises Betterment, consults executives via the Intro app, and is pursuing a doctorate in quality systems. Currently, she collaborates with Marc Lore (former CEO of Walmart) and Preet Bharara (former U.S. Attorney for the Southern District of New York) to build Telosa, a visionary new city in America.
Residing on the East Coast with her family, Netta continues to make a transformative impact in both the corporate and startup landscapes.
