Is a post stepping away from Geography, a radical proposition on organisational dynamics and a different take on AI
For the past thirty years, organisations, particularly those in the public sector, have quietly undergone a transformation. A simple look at their structure reveals a barrel-shaped organisation, not the classic pyramid of the late 20th century. The middle is broad, the bottom narrow and the top heavy.
This middle-heavy structure emerged with good intentions. As matrix management gained popularity, compliance rules became increasingly complex and digital changes became more intricate. Organisations responded by adding layers of coordination roles. Middle managers were hired not to make decisions but to facilitate information flow, standardise processes and ensure everyone was on the same page. Simultaneously, entry-level jobs became more automated, outsourced or simply less available.
The result? Organisations are not functioning as efficiently as they could, moving slowly and spending more time discussing work than actually doing it. This has been particularly evident in the public sector, where risk-averse attitudes and strict rules naturally encourage managers to spread out over front-line workers.
Now, artificial intelligence is poised to disrupt this status quo, pushing organisations back towards their natural state: the strict hierarchy of the pyramid.
The End of Middle Management?
To understand why AI will restore the pyramid, we must examine the core responsibilities of middle management. Traditional middle management primarily performs three key tasks:
- Information Synthesis: Gathering data from the front lines, summarising it and transmitting it upwards.
- Process Gatekeeping: Ensuring that policy, compliance and quality checks are applied to everyday tasks.
- Resource Allocation & Scheduling: Overseeing junior staff and managing workflows.
These three tasks perfectly align with the strengths of generative AI, large language models and automated agent workflows. AI excels at processing vast amounts of unstructured data, ensuring adherence to rules and maintaining the smooth operation of complex schedules.
As intelligence and processing power become commonplace, the need for five layers of management to translate strategic ideas into action diminishes. A single senior leader, supported by AI, can now lead intricate operations that previously required a substantial middle management layer.
Rebuilding the Base: A New Kind of Junior Workforce
With the middle layer shrinking, what happens to the foundation?
It may seem counterintuitive, but as AI assumes the analytical and coordinating roles of the middle level, the value of direct engagement—the base of the pyramid—increases. However, this lower level won’t resemble traditional entry-level positions.
Instead, it will comprise AI-assisted operational staff, including field workers, citizen service agents, domain experts and technical personnel utilising AI tools to perform more complex tasks directly where they matter most. With the burden of processing and paperwork significantly reduced, organisations can afford and will likely require a greater number of individuals actively contributing to ground-level impact.
Conversely, the top of the pyramid becomes smaller and more focused. Senior leadership will dedicate considerable time to strategic planning, ensuring fairness, upholding regulations and assuming accountability for outcomes. These tasks are beyond the capabilities of algorithms.
Why the Public Sector Will Feel It Most
While businesses will drive this change to maintain competitiveness, the public sector is likely to experience the most significant transformation.
Public bodies are often criticised for their large boxy structures stemming from years of reporting requirements, procurement checks and teams ensuring policy adherence. However, citizens truly value efficient services well-maintained buildings and effective local government.
Artificial intelligence presents public sector leaders with a fantastic opportunity to eliminate unnecessary bureaucracy and redirect resources to areas of greatest importance. Of course some changes to the legislative process may be required, but lets skip those for the moment..
- Direct Policy-to-Execution: AI-powered administrative processes can transform policy ideas into reality, saving months of manual effort.
- Radical Transparency: Automated audit trails reduce the need for manual compliance checks, streamlining processes.
- Front-Line Empowerment: Local workers and field engineers can leverage AI assistants to make crucial decisions swiftly, bypassing multiple managerial levels.
The Return to Default
The large organisation was merely a temporary solution. It arose from a lack of suitable tools to manage information prior to AI. It was the only feasible way to scale human coordination.
With AI revolutionising information flow, these additional layers of personnel are no longer necessary. Organisations will naturally evolve into a simple efficient pyramid structure: clear responsibility at the top, straightforward operations at the bottom and significantly reduced friction in between.
For leaders in both the private and public sectors, the question isn’t whether this transformation will occur but how swiftly they can prepare their organisations for it.
Now I imagine this will be not be an opinion without some dissenting views, do feel free to comment below if I am talking nonsense ?