The Evolving Role of the Functional Manager with Empowered Teams

Historically, functional managers juggled numerous responsibilities: resource allocation and budgeting, stakeholder management, strategic planning, endless meetings and reporting, process definition, technical leadership, team culture building, problem-solving, and talent development. While all of these responsibilities are important, traditional management structures force functional managers to spend the majority of their time on administrative work.

A revealing Harvard Business Review study highlighted this challenge: 53% of managers' time is consumed by administrative work, while 30% goes to problem-solving, leaving merely 10% for strategy and 7% for people development. This is a waste of the skills of the organisation’s most experienced talent.

The Traditional Activities of a Functional Manager

Historically, functional managers have been responsible for a wide range of activities:

Admin Work (53%)

1. Resource Allocation and Budgeting – Assigning people to projects, tracking utilisation, and managing budgets.

2. Meetings and Reporting – Conducting status meetings, preparing reports, and tracking key metrics.

Problem Solving (30%)

1. Problem Solving – Stepping in to resolve critical issues when projects go off track.

Strategy and innovation (10%)

1. Strategic Planning – Setting long-term goals and ensuring alignment with the company vision.

2. Process Definition – Establishing best practices and enforcing standardised workflows.

3. Technical Leadership – Guiding teams on best practices and ensuring technical excellence.

People & Stakeholder Management (7%)

1. Recruitment and Professional Growth – Hiring, onboarding, mentoring, and developing talent.

2. Team Culture and Morale – Maintaining motivation, resolving conflicts, and fostering a positive work environment.

3. Stakeholder Management – Coordinating with leadership, other departments, and external partners to align efforts.

How Empowered Teams Change the Role of Functional Managers

Empowered teams operate differently by integrating key functions within cross-functional product teams. These teams own the end-to-end delivery of products, reducing the need for functional managers to act as intermediaries. Let’s examine how this affects traditional managerial responsibilities:

Admin Work

1. Resource Allocation and Budgeting – individuals are assigned to product teams, eliminating the need for ongoing allocation and utilisation tracking. Budgeting shifts to product teams as well, reducing the need for functional managers to oversee financial planning at a granular level.
   Work eliminated

2. Meetings and Reporting – Meetings are centralised within the Product Team, replacing fragmented project-specific meetings with a single weekly business review across streams. This eliminates unnecessary status updates and redundant reporting efforts.
   Streamlined

Problem Solving

1. Problem Solving – Since functional managers are no longer accountable for execution details, they spend far less time firefighting or rescuing troubled projects. In fact, stepping in is an anti-pattern that should be avoided. Instead functional managers can offer mentoring to help teams solve problems for themselves.
   Work eliminated

Strategy and innovation

1. Strategic Planning – With reduced administrative overhead, functional managers can spend more time shaping long-term strategic initiatives, aligning technical roadmaps, and driving organisational improvements.
   Work increased

2. Process Definition – Empowered teams decide on the processes that work best for them. Functional managers no longer need to enforce rigid workflows, as teams are responsible for optimising their own efficiency.
   Work eliminated

3. Technical Leadership – One major concern for functional managers is skill atrophy when transitioning into management. The introduction of Enabling Teams, staffed with principal-level technical experts, addresses this by providing dedicated technical leadership resources that the functional managers can lean on so they can remain focussed on strategic initiatives.
   Streamlined

People & Stakeholder Management

1. Recruitment and Professional Growth – With administrative burdens reduced, functional managers can focus more on high-leverage activities such as hiring, career coaching, and professional development—areas where they can have the greatest impact.
   Work increased

2. Team Culture and Morale – Instead of the functional manager being solely responsible for culture and morale, this responsibility is now shared with the Product Team and Stream Teams. Individuals still report to the functional manager, but day-to-day engagement and motivation are managed within product teams.
   Streamlined

3. Stakeholder Management – Instead of functional managers acting as intermediaries, stakeholder engagement is handled within the product team. This dramatically reduces the coordination burden on functional managers.
   Streamlined

Addressing Common Concerns

While this transition offers significant benefits, it also raises understandable concerns:

1. Loss of Power

Functional managers accustomed to direct control may feel that they are losing influence. However, the shift is not about reducing authority but about transitioning to a servant leadership model. Influence now comes from mentoring, coaching, and guiding teams rather than dictating how work is done.

2. Lack of Social Standing

While managing fewer direct reports might seem like a status reduction, the ability to focus on high-leverage strategic work often leads to greater organisational impact and professional satisfaction.

3. "It Won’t Work" Mentality

Skeptics argue that empowering teams introduces risks. However, many successful companies operate with this model. Proper implementation, support, and training help mitigate these risks.

4. "I Didn’t Sign Up for This"

Some managers may feel this isn't what they signed up for. And they’re right! However, this transition offers valuable experience in modern management approaches, enhancing rather than diminishing their career prospects.

5. Fear of Incompetence in the New Role

Transitioning to a strategic enabler requires new skills, which can create anxiety. Organisations must provide training, mentorship, and reassurance to help managers navigate the change effectively.

Conclusion

The role of the functional manager is evolving from an administrative overseer to a strategic enabler. By eliminating redundant tasks, decentralising decision-making, and empowering product teams, functional managers can focus on high-leverage activities like strategy, professional development, and long-term growth.

While this shift presents challenges, it ultimately leads to a more effective organisation. By embracing this new model, functional managers can increase their impact, reduce inefficiencies, and drive meaningful change in their organisations.