Manager to employee ratio (adapted Blinkist)

Build organizations from the top down and keep an eye on manager-to-employee ratios.


As you move toward your goals, it's only a matter of time before problems arise. But there's no reason to panic or be deterred by these bumps in the road. Developing solutions for problems is how many companies improve. In other words, most problems will end up providing fuel for your machine.


However, if you hope to turn problems into advantages, you need to design your business so that problems get noticed and solutions get implemented as quickly as possible.

One of the best ways to build your organization is from the top down.


You can think of a good business structure as being the opposite of a building – your foundation is located at the top, which means that, first and foremost, you need to make sure you have great managers.


Every manager should be trustworthy and have high standards. If this isn't the case, their weaknesses and poor performance will eventually spread to their staff. On the other hand, managers who show their appreciation for excellent work, and have strong oversight and strict quality control, will lead teams of employees who rise to their level of great performance.


So that problems can be dealt with swiftly, each department should be given a certain amount of self-sufficiency and control over the resources they require. If bureaucracy is keeping departments from acting fast, your teams simply won't be able to do their job.


Finally, it's also wise to keep a balanced ratio of managers to staff. A good rule of thumb is not to exceed a ratio of ten to one.


The ideal ratio is closer to five employees for every manager, as this will give your managers the best chance of having meaningful relationships and mutual understanding with each employee. But rather than setting strict rules on team sizes, you'll get the best results by assessing each manager's capabilities and proceeding accordingly.


So now you have a basic idea of the principles the author has used to find amazing success. It's up to you to start putting them to use and turning your organization into a constantly evolving and constantly winning enterprise.