The optimal number of direct reports appropriate for any work area will also be affected by the individual characteristics of an agency. These are listed in Table 2. Table 1: Number of Direct Reports by Work Type Category One Specialist policy - highly technical High levels of judgment and risk Category Two Policy and programme development Programme delivery Category Three High service delivery Case management Category Four High volume service delivery Regular and less complex tasks Benchmark number of direct reports: 3-7 Benchmark number of direct reports: 5-9 Benchmark number of direct reports: 6-9 Benchmark number of direct reports: 8-15+ Provide advice in an area of technical expertise and specialisation. High level subject matter expertise is required in all jobs and at all levels. Highly complex tasks. Decisions have significant risk, including reputational risk. High level of influence in area of specialisation. High level of judgement High level of stakeholder engagement. Industry leader. Distinct area of expertise with a level of specialisation. Broad policy advice across multiple areas within the same sphere of influence. Requirement to shape policy and develop methodologies. Responsible for promulgation of policy and revisions. High of innovation. Design and delivery of complex programmes. Tailored approaches to delivery of outcomes. High to medium complexity. Low number of routine application (one offs). Broad range of work types and interactions. priorities and objectives. High level of stakeholder engagement. High volume of routine and repetitive tasks. easily grouped. Boundaries and frameworks for business processes and decision making are clearly defined and well tested. Processes are simple and replicated across multiple situations. Work is determined with minimal interaction required. High level of technology supports work processing. Table 2: Agency characteristics Size Larger organisations typically support a larger number of direct reports. Larger organisations often have greater numbers of employees undertaking similar functions and activities. They can have greater capacity for work standardisation and work effectively with a larger number of direct reports. Smaller organisations can require employees to perform multiple roles and require a higher level of supervision, suggesting the need for fewer direct reports. Maturity Mature and stable organisations typically support a larger number of direct reports. Organisations that have clear direction, well established operations and procedures and low staff attrition can typically work effectively with a larger number of direct reports.
Pace of change is too rapid A pace of change that is too rapid may result in disruption to business, particularly where there is ‘change fatigue’. One outcome may be managers with an unsustainable number of direct reports. The implementation plan has realistic milestones. This will be particularly relevant to larger agencies with complex structures in place. There is effective communication with employees. Failure to address required change in management capabilities Increased numbers of direct reports require increased management capabilities and increased management functions for managers. Agencies that do not develop this capability and account for this change jeopardise the sustainability of revised structures and limit the benefits of change. New capabilities are supported by investment in training and development. Staff development is part of implementation plans. Failure to ensure HR and organisational design capabilities Capability and skill in strategic human resource, organisational design and change management is required to support effective change. Staff development and training focuses on these three areas. Ideas and experience are shared through a community of practice that includes other agencies, the public sector more broadly and the private sector. Insufficient support for appropriate decision making Change in management structures will lead to improvements in decision making when it is supported by an appropriate approach to risk. Benefits will not be realised if the revised structure is not supported by practice and culture, and decisions continue to be “pushed up the line”. Review delegations and promote a cultural to appropriate risk management.