Spans and Layers

Hi Rana - Here's our info: 

* Total Layers: 8. This is for administrative/professional workforce. We sometimes have a few student employees at the 9th layer, and some production employees would fall at the 9th layer. 

* Min, Average and Max Span: Average span is 7.8. Min is 1 (relatively few instances). Max is hard to provide as we have some programs where employees are assigned under a centralized individual even though they are assigned out to various projects. Two additional org health metrics we routinely measure are
   1) % Spans < 5; we're currently at 18%;
   2) % Managers; we're currently at 13% (this is the % of our administrative/professional workforce who have Deere employees as direct reports. 

* Industry: Manufacturing (with a heavy dose of technology)

* How often do you analyze your spans and layers: Since 2015, these metrics have been shared with CEO and staff at least quarterly. Most senior officers and their staff members review their organization's info monthly. We'll soon be publishing a Global People KPI Dashboard with these metrics that will refresh daily. 

*if allowed to share, how do you determine when to decrease or increase the layers in your organization: We went through a major 'Smart Industrial' enterprise reorganization in 2020. The guidelines from that initiative are still in place and used to determine if corrective action is needed.

I'd be curious to know how your organization looks. 

Let me know if you have questions!

Amy

Hi Rana, my responses below - 

Total Layers: 9

Min, Average and Max Span: Min = 1 (few instances also), Average = 12, Max hard to define for the same reason that Amy described. That being said, we know we have managers that likely have too many direct reports. It's a continual challenge balancing a desire to flatten the org. with the reality of leading large teams. There's a constant tension with that. 

Industry: Manufacturing

How often do you analyze your spans and layers: Annually at minimum with an executive review, and all leaders have dashboards with their spans and layers that are updated daily. They are encouraged to address any pain points and make improvements on an as-needed basis.

if allowed to share, how do you determine when to decrease or increase the layers in your organization: This is driven by several things most likely - reduce costs usually results in fewer layers and larger spans which is balanced by the challenge of having too many direct reports (upward feedback surveys support that leaders with very large teams have lower engagement and more opportunities for improvement, for instance). The need for increased organizational agility drives fewer layers/larger spans as well - this is often surfaced during annual strategic planning meetings or workforce planning discussions. Again, not just one thing prompts this.

Hello Rana,
Below are our responses from CVS Health. Thanks!

Total layers: 12

Min, Max, and Average Span:

Min: 1

Max: Although we have one team with 310 and 45 teams with 70 or more, the majority of our teams (82.4%) have fewer than 15. The most common team size is 5-9; 38.6% of our teams are this size.

Average: 9.9

Industry: Healthcare and Retail

There is no one size fits all approach or magic number that everyone should be working toward. We will often provide a range: teams with fewer than 3 directs or more than 9 directs are probably worth assessing. We always emphasize that the work and roles are the key factors in determining spans. For example, very complex work often results in smaller spans. A player-coach manager should probably have fewer directs than a manager solely focused on leading teams as his or her primary responsibility. Lastly, we try to ensure that similar roles have similar spans. For example, if two teams are producing the same widget, they should have the same or similar spans.  

How often should you analyze spans and layers?

Spans and layer analysis should be an ongoing exercise for all leaders. Whenever headcount changes (increases or decreases) is a great time to ensure the spans and layers are optimal. Additionally, changes in technology, strategic intent, or a team’s deliverables/the work being done (e.g., quantity, quality, or different tasks) present a great opportunity to better align colleagues to achieve the team’s goals. By continuously questioning whether your organization is optimized, you are more likely to avoid a one-off spans and layers exercise.

How do you determine when to decrease or increase the layers in your organization?

To determine if the managerial layers are adding value, ask yourself:

• Do the layers align with the business model and corporate values?
• Do the layers help coordinate various business units?
• Do the layers help relieve management span?

When to Add a Layer or Decrease a Span:

• Span is much too large (e.g., VP with 15+ directs)
• Colleagues feel isolated, not enough guidance
• Manager stretched too thin
• Colleagues don’t have regular touch bases with manager

When to Remove a Layer or Increase a Span:

• Span is much too small (e.g., only 1 direct)
• Too much red tape in decision making
• Manager doesn’t have enough work to do
• Colleagues feel micromanaged