Traditionally, industrial production has moved in only one direction: from small to large. ‘Scaling up’ was the best way to maximize productivity and lower per-unit costs. A fleet of 100 ten-ton dump trucks requires more drivers than a fleet of 10 hundred-ton dump trucks. But automation and communication technology has evolved to the point where a large number of small units may be cheaper, better and more efficient than a small number of large units.
The size and structure of C-Suites has changed significantly over the past few decades. An examination of these changes reveals a number of shifts, including one towards more product-focused (or front-end) functional managers in organizations with closely-related business units, and an increase in administrative positions where organizations invest more in IT. These findings also have an impact on general managers’ salaries. Here’s why executives should pay attention to these shifts when structuring their top teams.
