Worksheet · Operating Model Health Check
Count the layers and spans on one page
Layers and narrow spans grow one sensible hire at a time. This sheet counts them from the org chart and asks the managers with few reports what their job is. It builds the Competent step of the check:
Most managers have six to eight reports, more where the work is repetitive, and there are no more than four layers from the CEO to the front line in a business under a hundred million, five in a larger one.
Step 1. Count from the org chart
The CEO is layer 1. A manager is anyone with at least one direct report.
| Layer | Managers | People with no reports | Median reports per manager |
|---|---|---|---|
| 1 (CEO) | 1 | ||
| 2 | |||
| 3 | |||
| 4 | |||
| 5 | |||
| 6 | |||
| e.g. 4 | 20 | 60 | 3 |
Step 2. Set the range for each kind of work
| Kind of work | Similar or varied tasks | Supervision needed | Manager's own non-management work | Range of reports that fits |
|---|---|---|---|---|
| e.g. Warehouse picking | Similar | Low | Little | 10 to 15 |
Repetitive work with little supervision takes wide spans. Varied, complex work takes narrower ones.
Step 3. Ask the managers with fewer than four reports
| Manager | Reports | What the job is, in their words | Keep, widen or merge |
|---|---|---|---|
Ask before anyone talks about savings. Some narrow spans are right.
Done when: most managers sit inside the range for their kind of work, and the layers to the front line are within your size's limit.
Adapted from our own spans-and-layers method (PSP, 2011).
From the Operating Model Health Check. Your report links the sheet for each of its moves.