In the News
THE WALL STREET JOURNAL
Middle Managers Find Their Skills, Integrity Now Carry More Weight
In the Lead
By Carol Hymowitz
July 30, 2002

Make way for astute middle managers. Their power is growing as many find they have more credibility and goodwill from their staffs than do their top bosses.

After all the complaints about how the workplace is never a meritocracy and how back-stabbbers always win, now is the time for hard-working and trustworthy managers to present themselves as the new face of upper management.

With dozens of senior executives under scrutiny for wrongdoings, middle managers are "like kids in dysfunctional families" says Dory Hollander, a partner at WiseWorkplaces, Arlington, VA. "They're looking at the bosses they've depended on and saying, 'I don't want to be like them -- and maybe I can do a whole lot better.' "

Who has the best chance to advance? Those who haven't been stuck a long time in midlevel jobs because they are non-assertive types who went along with superiors to get along, or who weren't previously bypassed for promotions because "they got crushed somewhere in their careers," Ms. Hollander explains. "I'd bet on relative newcomers to middle management" and on people who have moved from one company to another, acquiring skills and allies along the way.

In either case, middle managers who want to flex their leadership muscles should assess their strengths and weaknesses and gain the experience they lack. What's needed now is financial know-how and an ability to communicate with a range of constituents.

Ms. Hollander is coaching 13 middle managers at several companies who see a vacuum at the top, and so an opportunity to exert more influence over decision-making. Among these are a software manager who has won kudos for his conceptual skills but has never been a people leader, she says. "He had decided this is a good time to develop communications and empathy skills to fill his gaps -- and see how far he can go," she says.

David D'Alessandro, chief executive at John Hancock Financial Services, Boston, is challenging his middle managers to demonstrate their leadership ambitions. "I'm telling them to prove to me how they can take market share right now," he says. "With all the incompetence in the investment world, this is a chance to win new customers who want secure products."

Moreover, at a time of great business upheaval, the less-promising managers are easily identified. "They're the managers who say they don't want to sign financial statements related to their departments because that is the responsibility of the CEO, or they don't want to be paid partly in options anymore, since stock prices are down," he says. By contrast, the nonwimp group knows there are opportunities in managing through adversity. "It has to do with character and believing in yourself."

Randy Gausman isn't discouraged even though as chief financial officer of iBeam Broadcasting, Sunnyvale, Calif., he recently oversaw the company's filing for bankruptcy protection. Now, he's seeking a new job.

After nearly 30 years in business, "I've seen a lot of economic cycles," he says. "The compensation [for managers] isn't going to be what it was three or four years ago but those who persevere, put their heads down and work hard can gain experience and move ahead. And there's no better experience than moving through some rough patches like the one we're in now."

Mr. Gausman, who previously founded an Internet company still in business, and has worked for start-ups, says he is wedded to difficult situations. "I get an adrenaline rush trying to build something or turn it around, " he adds.

Middle managers often have more regular contact with customers, suppliers and employees than their top bosses, so they have a chance to show their integrity, the quality most desired in leaders today.

"Corporate directors want to know whether you let subordinates play near the edge of the court, or how you make sure to keep them away from the line they should never cross," says Michael Useem, a professor and director of the Center for Leadership and Management Change at the Wharton School.


Pat Cook, head of Cook & Co., a boutique executive search firm, says that during the dot-com boom, youth, speed and exuberance were the most highly valued traits, but in the past few months clients mostly want to know they can trust a candidate.

"We're back to basics where what counts is honesty and reliability, along with the ability to get hard-core results," she says. "All those people who got ahead for all the wrong reasons are going to have to stand aside."

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