Organisations often develop too many layers over time. Companies need to move fast in terms of decision making and often encounter further headcount savings. Delayering is the process of identifying and delivering the optimum number of layers in an organisation that will optimise accountability, decision making and efficiency.
The bottom line on De-Layering
Delayering delivers benefits, but the impact of it needs to be carefully considered against the context of other drivers in the organisation. The best programmes are blended with other initiatives such as centralisation or Robotic Process Automation (RPA).
Delayering programmes can deliver the following benefits:
- Headcount savings – organisations which have historically grown with too many layers of management and senior management can often achieve 10%+ reduction in headcount cost, without impacting frontline operations
- Decision making and agility – organisations which have too many layers can be slowed down by decision hierarchies
- Accountability – fewer layers can result in a smaller number of clear Manager and Leadership definitions
- Simplification – delayering often results in function pooling and sharing leading to further economies of scale