Why Mid-Level Management Is Becoming the #1 Barrier to Scale

Scaling a business should be a celebration but more often than not, it exposes new points of friction. And one of the most common (and least talked about) barriers? Mid-level management.

These are the team leaders, department heads, and project managers tasked with “keeping things running.” But when a business grows quickly, this layer can become a bottleneck, not a bridge.

It’s not about bad people, it’s about outdated structures and unrealistic expectations placed on this tier.

Here’s why mid-level management is becoming the #1 barrier to scale and how smart companies are fixing it.

1. They’re Trapped Between Strategy and Execution

Mid-level managers are often expected to take senior leadership’s vision and turn it into results. But in reality, they’re given broad direction without the context, resources, or decision-making authority to execute.

This leads to delays, confusion, and morale issues.

🔍 Example: At one stage in Atlassian’s growth, teams reported feeling stuck in decision limbo. To fix it, they shifted decision rights closer to the frontline and reduced hierarchy. The result? Faster execution and empowered teams.

The fix: Clarify where decisions are made. Push authority down, not just accountability. Trust your mid-level managers to lead, not just follow.

2. They’re Managing Workloads, Not Developing People

A common issue is promoting high performers into management roles without giving them the tools to lead. These managers often default to task oversight, not team development.

They end up micromanaging, unintentionally stalling team growth.

🔍 Example: BHP addressed this by rolling out a leadership development program focused on coaching skills, empathy, and accountability, transforming mid-tier supervisors into people leaders.

The fix: Train managers to coach, not just manage. Leadership isn’t instinct, it’s a learned skill that needs investment.

3. They’re Swamped with Admin and Meetings

As companies grow, so does the operational noise such as status reports, compliance checks, internal updates. Many mid-level managers report spending less than 30% of their time on actual leadership work.

🔍 Example: SEEK streamlined internal reporting and reduced recurring meeting hours by half, freeing up managers to spend more time supporting teams and driving value.

The fix: Cut the clutter. Audit internal processes, remove outdated reporting, and reduce low-impact meetings. Create space for managers to lead strategically.

4. They’re Disconnected from the Customer

As the business expands, many managers become more inward-facing. They focus on internal KPIs, budgets, and staff issues, losing touch with the customer experience which ultimately hurts innovation and service quality.

🔍 Example: Virgin Australia encourages all team leads to spend time with frontline teams, shadow customer service reps, and join customer calls quarterly to stay connected to the end-user.

The fix: Build regular, structured exposure to customers through feedback loops, ride-alongs, or CX data reviews.

5. Their Role Doesn’t Fit a Fast-Moving Business

Traditional management roles were built for stability, not agility. But fast-growing companies need cross-functional collaboration, rapid feedback, and flexible teams. Mid-level managers who stick to rigid roles and slow approvals become blockers.

🔍 Example: Canva’s internal structure prioritises squads and tribes over traditional hierarchies. Mid-level leaders are facilitators, not gatekeepers, enabling teams to collaborate across silos.

The fix: Redesign roles. Emphasise facilitation, agility, and shared goals over command-and-control leadership.

The Bottom Line: Mid-Level Management Needs a Modern Makeover

Mid-level managers aren’t the problem, they’re often the most under-supported, over-burdened people in your business. But in a fast-scaling environment, the old model just doesn’t hold up.

This layer needs redefinition, training, and tools to truly drive scale.

If your business is hitting a ceiling, don’t just look at systems or top-line strategy, look at how your middle layer is functioning. Are they blocking progress or enabling it?

3 Questions to Ask Right Now:

1. Are our mid-level managers empowered to make meaningful decisions?

2. Do they have time to lead people, or are they drowning in admin?

3. Are they connected to our customers or buried in internal process?

   
   

The answers might reveal more about your company’s growth potential than any sales report ever could.