Chief executives doubled the span of their control of firms in two decades, a global study says.
The survey, by the management and strategy consulting firm Booz & Company and Harvard Business School, analysed 300 Fortune 500 companies between 1986 and 2008.
By the end of the study, chief executives received an average of 10 direct reports on their companies' operations, compared with only five in 1986.
Booz is now investigating to see if there are any similarities to organisations in the Middle East.
"We just started this exercise and look forward to the results," said Ramy Sfeir, a principal with Booz & Company in Abu Dhabi.
"In general, however, chief executives in the region have generally had a large number of reports compared to more international companies. We need to confirm or negate that during our study," he said.
The study found that chief executives now receive more reports on their companies from professionals with extensive "functional" expertise, such as chief marketing officers or chief information officers.
"If you look at the trend in terms of competitiveness and what it takes for companies to succeed today, there is much more focus on having very deep functional expertise to be able to over-perform and beat your competition," he added.
Historically, such functions were often performed by a chief administrative officer or a chief operating officer (COO) - positions that have become less relevant in recent years, said Mr Sfeir.
In 1986, 55 per cent of Fortune 500 companies had chief operating officers. By 1999 the number was down to 45 per cent, and it has continued to decline over the past decade.
"The COO position is becoming less relevant," said Mr Sfeir.
Factors including better digitisation and easier interpersonal coordination are helping chief executives to stay connected in a more efficient manner. The study also found that when chief executives take over, they tend to make more contact with other senior staff to identify high performers and understand the business first-hand.
"As chief executives' tenures extend, the direct reports tend to go down because [they] are more comfortable with delegating more to people they identify as high performers," said Mr Sfeir.
gduncan@thenational.ae
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The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
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Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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Skewed figures
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- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
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2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
MATCH INFO
Manchester United 6 (McTominay 2', 3'; Fernandes 20', 70' pen; Lindelof 37'; James 65')
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Man of the match: Scott McTominay (Manchester United)
