Generally speaking, a management team is a group of top managers who manage the daily operations and strategic direction of the company. They often work closely together with the top leader (or the Chief Executive Officer). Meeting frequency would depend on the needs of the management team in question, or the type of business that the team works in. Quarterly, monthly, or weekly meetings are not out of the ordinary to suit your company’s strategy. Meetings of the company’s management team tend to be structured according to the direct reports provided by the CEO. Members of management teams require a deep appreciation and understanding of effective leadership styles.
The management team includes the Chief Executive Officer (CEO) and consists further of the top senior team of managers who lead an organization. However, it should not be simplified to just a group of top managers. The success of the team depends on high levels of cooperation across all different functions of the business.
The purpose of the management team, broadly speaking, is organizational operation and all the nuances associated with it. It also includes strategic plans for the future of the organization. Furthermore, it is important that what the executive team produces is more than what individual team members have achieved. When a management team is truly effective the organization is more than just the combined functions of daily operations.
Each member of the management team is in charge of different functions of the business, and is therefore responsible for ensuring that the different parts of the business are moving in the same direction. Some examples of what generally is included in the purpose of a management team, depending on the type of organization are:
Moving from mid-level management to the top management team is not a simple step. Executive leadership requires a lot more than is expected from other high-level managers who are not at the same level as senior executives. Strategic thinking and advanced leadership skills are required for the top management team. Usually, a democratic leadership style works well within a senior team because it results in empowerment and engagement through high levels of participation. It makes team performance substantially better.
That being said, democratic leadership is not the only leadership style that can bring a CEO with vast experience, or a senior team with great dedication and teamwork, to success. What is most essential is to have a Chief Executive Officer (CEO) and other management team members who are dedicated to their staff and the overall health of the business. An attitude that can help the team succeed can help the organization succeed.
The entire company is usually reflected in the setup of the management team. The executive team is made up of the top manager of different functions within the business. The top leader of the business also leads the management team. This can be the CEO, the business owner, the Managing Director, or the president.
It is common for the top management team to reflect the business structure. A management team needs an atmosphere that encourages cooperation and trust. In a tech startup, there may be leaders in finance, HR, IT infrastructure, software development, marketing, and sales. In a manufacturing company, it is more common to see a finance, HR, logistics, operations, and sales manager in a senior management team.
It is essential to remember that everyone in the management team does not need to report to the top leader. It is possible in some companies that not all staff functions need to be represented in the management team.
How often meetings happen and how long they last depend on the needs of the leadership group and business. Here are some examples of common setups that happen when businesses with different requirements form management teams and need to decide on meeting schedules:
It is important to remember that specific skills are required to run these meetings efficiently. If team meetings are ineffective and do not lead to results, accountability, and empowerment are a waste of time and resources. For remote meetings proper equipment is needed so that less time is spent trying to get equipment to work properly.
Senior leaders in a management team need to lead your organization. Empowerment of the management team is essential, even when the top leader may have a stronger say in most decisions. When the team feels empowered, they are more likely to be accountable and responsible, and this improves the team’s performance.
An effective management team makes the business less dependent on the top leader. When a business is less dependent on senior leadership there is less risk associated with changes to the top management tier. When the management team is empowered and self-sufficient an organization without a leader is not at risk.
In a small business, the management teams might take care of day-to-day operations, whereas larger entities require board members to see to the overarching business operations and ensure that corporate strategy is implemented properly. Direct reports from a top leader (sometimes a business owner, sometimes an MD, etc.) determine the structures of these meetings. When a management team is efficient because they are empowered to establish priorities, create budgets, set financial goals, and make final decisions, then the organization is not dependent on the top leader and members of management teams can work independently.
Executive positions usually take on roles in management teams, for example:
Management teams ensure that marketing strategies are met, staff functions are performed accordingly, that strong communication is maintained, sales targets are met, etc. Basically, this team reports directly to the CEO and is directly responsible for making sure that the business grows through a well-set strategy.
It is absolutely essential to have the right person in the right role. Only the most effective people can make a true success in a role like the Chief Marketing Officer (CMO) or Chief Financial Officer (CFO) within an organization. Coming up with a successful marketing strategy or ensuring that financial goals are met can be difficult, as can any other role at the top management level. The C-suite is responsible for most of the success in the corporate world, so the team structure is absolutely essential.