The Business Book

51

Enablers are the realm of middle managers,

according to Michael Hammer’s analysis of the

science of management. When implemented

and maintained efficiently, they foster

growth and turn the vision of

senior executives into reality.

The development of infrastructure
and the strength of a new layer of
middle management were key
factors in the evolution of UK retailer
Cath Kidston from a single store
in 1993 to more than 120 global
branches and concessions by 2013,
with stores throughout Europe and
Asia, and plans to expand into
North America. Widely renowned
for its vintage fabrics, wallpapers,
and brightly painted junk furniture,
Kidston’s initial growth, as is
common with many single-founder
start-ups, was slow. In the early
days, monthly accounts took six
weeks to prepare and clashes
between IT systems caused issues
with cash-flow projections and
supply-chain management. It took
nine years to open a second branch,
and another two before the third.
Following a buy out in 2010,
Cath Kidston became partly owned
by a US private-equity group, with
Kidston herself retaining about 20
percent of stock. As expansion took
hold, the company started to move
from ad-hoc processes to a more
planned approach. Specialized
managers and consultants were
brought in to help build capacity for
growth. New departments were
added, including design, buying,
and merchandising, and systems
were introduced. Most importantly,
middle management gained
experience of what it takes to open
and run a new store. The lessons
from earlier mistakes were
integrated into procedures and
policies; by building on experience,
every new store opening became
easier than the last.

Excess and habit
The dangers of processes and of
hierarchy (if it becomes excessive)
are that they may begin to grip the
organization too tightly. Protocol
and bureaucracy can wear people

down, stifling innovation and

hindering growth. As markets and

technology move ever faster,

process must not blind managers to

opportunity, and systems must not

restrict strategic agility. For

example, Motorola continued to

invest in satellite technology

throughout the 1990s even after

competitors had switched to

cheaper, more effective ground-

based cell towers.

Habit can also twist logic. So

habitual, for example, were the

claims of ethical behavior from

Dennis Kozlowski, CEO of Swiss

security company Tyco International,

that he seemed able to divorce the

reality of his own behavior from his

rhetoric—in 2005 he was convicted

of corporate fraud. Habit can also

lead to hubris. Buoyed by his

business’s accomplishment in

electronics, in 1994 Samsung CEO

Lee Kun-Hee believed that the

same approach would lead to

success in the car market, but the

venture struggled and was rescued

in 2000 by Renault. The experience

(and habits) of Renault’s managers

START SMALL, THINK BIG

have since helped Renault Samsung

Motors gain a footing within the

South Korean automotive market.

Business leaders dismiss the

value of middle management, and

the value of process, at their peril.

Without middle managers who are

able to evolve a leader’s vision into

reality, many businesses would be

stuck like those of the pre-railroad

era, destined to remain small, local,

and family run. It is the science of

management that enables business

evolution and growth. ■

If you can’t describe

what you are doing

as a process, you don’t

know what you’re doing.

W. Edwards Deming

Middle

managers

Performance management

Design

Protocol

Process

Responsibilities

Infrastructure