Micromanagement in the C-Suite: How to Spot it and What Boards Should Do About It
Debbie Morrison • September 12, 2023

It's no secret that micromanagement is often seen as the bane of innovation and creativity in companies. From entry-level employees to middle managers, the stifling nature of micromanagement is a frequently lamented phenomenon. However, one area where this management style is often overlooked, yet perilously influential, is in the C-suite. If you think micromanagement is problematic at lower levels, its impact at the top tier of management can be exponentially more damaging.


1. Why Micromanagement in the C-Suite Matters

Micromanagement within the C-suite affects strategic decisions, company culture, and the overall direction of the organisation. When a CEO or CFO begins to dwell on minutiae, it signals to the rest of the organisation that they don't trust their teams or processes. Such a mindset, inevitably, trickles down.


According to a recent study by
Accountemps found that as many as 59% of people have been managed by a micromanager at some point in their career. Of the people who reported working for a micromanager, 68% said it had decreased their morale, and 55% claimed it had hurt their productivity. A 2019 Gallup poll found that employees who feel they are micromanaged are 28% more likely to consider leaving their job. While this figure pertains to the broad spectrum of the workforce, consider the ramifications at the executive level: senior leadership disengagement, or worse, top talents abandoning ship, could prove catastrophic.


2. Spotting the Signs of Micromanagement in the C-Suite

Often, micromanagement at the c-suite level is subtle and masked as "due diligence" or "deep involvement." Here are some warning signs to be on the lookout for:

  • Incessant Detail-Orientation: It’s one thing for a CEO to understand the finer points of a project, but if they’re demanding daily updates on tasks that are typically managed several levels down, it's a red flag.
  • Decisional Bottlenecks: If most decisions, including the less significant ones, are pending top leadership's input, it hampers agility.
  • High Executive Turnover: While numerous factors can contribute to turnover, an abnormally high rate within senior ranks might suggest a challenging work environment spearheaded by micromanagement.
  • Frequent Bypassing of Hierarchies: If the CEO is consistently reaching out directly to middle management or entry-level employees, bypassing the respective heads, it may signal trust issues with senior leaders.


3. The Underlying Causes

Before diving into solutions, it's crucial to grasp the root causes. For the C-suite, the pressures are immense. Stakeholders, investors, and market dynamics require a finger-on-the-pulse approach. Still, when micromanagement sets in, it often stems from:

  • Insecurity: Whether due to prior failures, perceived threats from team members, or personal insecurities, some executives might use micromanagement as a defence mechanism.
  • Lack of Trust in the Team: Perhaps arising from past experiences, the inability to trust can lead executives to take everything upon themselves.
  • Perfectionism: An often-praised trait that, when taken to extremes, becomes counterproductive.


4. What Boards Should Do About It

Boards of Directors, given their governance role, have both the responsibility and authority to address C-suite micromanagement.

  • Open Dialogue: Initiate conversations with the concerned executive, aiming to understand their perspective. Instead of accusations, frame it as a shared responsibility to ensure the company’s success.
  • 360-Degree Feedback: Implement a system where senior leaders receive anonymous feedback from their peers, subordinates, and even board members. Such systems, as revealed by a Harvard Business Review study, can help executives recognize and address their micromanaging tendencies.
  • Leadership Coaching: Consider bringing in executive coaches. They offer external perspectives and can provide tools and strategies to shift from micromanagement to macro leadership.
  • Redesign Decision Frameworks: If an executive is involved in too many decisions, it might be time to reassess which issues require C-suite intervention and which can be delegated.

5. A Glimpse into a Macro-Leadership Future

As we march into an era that lauds agile management, AI-driven decisions, and a focus on company culture, the tolerance for micromanagement, especially in the C-suite, shrinks. 


A
2021 Deloitte study suggests that organisations adopting AI for decision-making processes outpace their competitors by 11% in terms of growth. This translates to a straightforward principle: empower systems and people, and the dividends will be palpable.


The strategic altitude that C-suite executives should operate at doesn't afford the luxury of micromanagement. It's a costly endeavour, both in terms of time and the potential quashing of innovative sparks. For boards and stakeholders, recognising and addressing this issue isn't just about fostering a pleasant work environment—it's a crucial move to ensure the organisation's robust, sustainable growth.


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