Managers in the middle are a critical, but unreliable link between business strategy and strong results. They are the “working leaders,” the vital glue that holds the organization together and makes it hum. These managers are capable of driving change at the front line, where it counts. Senior leaders need to engage them and give them the accountability they need to excel. Middle managers are capable of doing more.

A manager in a professional services firm compressed a bureaucratic process by 16 months. He explained his approach this way:

“While it usually takes 18 months to get the necessary reviews and approvals on a large, highly visible project, I knew we had only 8 weeks. I persuaded my colleagues to re-set their priorities because the firm’s reputation was on the line. We met the new schedule and everyone owned the outcome. It was quite remarkable.”

This manager instigated a change that redirected an entire organization. He had the audacity to ask people to alter a long-established process. He believed that the new goal was difficult, but doable. His expectations were clear and motivating. He assumed accountability, then shared it with his team and other contributors.

The idea of working leaders is a growing trend. Managers are capable of translating ambitious ideas into practical strategies and executing with speed. Many progressive companies are expecting managers to lead, recognizing that too much structure kills innovation and slows things down.

Bain Consulting senior partner Chris Zook argues that distributed leadership helps companies focus on what really makes them profitable in turbulent times (Stefan Stern’s column On management, Financial Times, 2/16/2010). Distributed leadership reduces the layers of management and places more of the decision-making on the front line. To illustrate: “Goldman Sachs performed better than most other banks in the recent crisis partly because of its flatter hierarchy, higher levels of mutual trust, and the speed with which action was taken.”

For sure, top leaders have a birds-eye view of problems throughout the organization. But it’s impossible for these executives to deal with every situation first hand. Telling people what to do is not a good long term strategy.

Empowering middle managers is an exciting idea. It’s smart leadership in the new economy.

Liz Robert, CEO of the Vermont Teddy Bear Company from 1997 to March 2009, led a continuing transformation in the business and culture, turning a failing company into a profitable gift delivery business. Robert accomplished what few leaders do. She substantially upgraded skills and added capabilities without changing staff. She figured out the priorities to fix the problems by engaging her managers. She altered the way her people approached the business by working closely with them.

But most managers find it difficult if not impossible to champion change if the culture doesn’t allow it. Middle managers need the authority to act. They need access to information that is often blocked by their managers above.

So what’s a top leader to do to build leaders in the middle?

• Start by creating a clear purpose and direction that inspires enthusiasm among employees.  
• Ask the senior team to think critically about the structure, resources alignment and roles: Streamline, tear down barriers and keep communications open and direct. Rigid silos and hierarchies hinder innovation and results.
• Make innovation a business priority: A senior executive in media development said she never found resistance to change, because she had always worked in new and cutting edge markets.
• Create a culture that values collaboration and speed: At its worse, isolation stifles creativity, innovation, and problem solving. Businesses become insular and slow.

Leadership starts early even before the managerial level, by asking good questions, speaking up, and working on new and different challenges. Many boring jobs are created by middle managers who are not engaged enough or creative enough to use their company’s resources to full advantage. The problem is solved when managers feel a greater stake in the company’s performance.

While they could try, leaders at the top are unable to run the entire show effectively. It’s time to give the middle managers the go-ahead to lead, encourage them to experiment and learn – make them leaders too. The positive impact on organizational dynamics and results are too great an opportunity to miss.