Amazon’s decision to cut 15% of its managers likely comes from a closer look at ratios. Were there too many managers with only 2-3 direct reports? That’s entirely possible. From my time at AWS, I didn’t see this much in engineering, so I doubt those teams will feel it as hard. But other departments with too many managers overseeing too few people were probably more bloated. It’s similar to what Meta’s doing in its “Year of Efficiency,” flattening structures and cutting unnecessary roles to make teams leaner and more agile.
It’s likely they found departments with bloated management structures where managers oversee just a couple of direct reports. That’s inefficient, especially at Amazon’s scale. If some areas had too many middle managers doing very little oversight, then trimming the fat makes sense. But, of course, it depends on which part of the company you’re looking at.
In any event, this brings us to a good question: What’s the ideal number of direct reports for a manager in engineering? You don’t have to wait for an answer. I have my magic number: seven. Well, obviously, it can’t be just one number, so let’s explore span of control, why seven and what data says.
Span Of Control
Span of control is basically how many people a manager directly manages. If it’s a narrow span like less than 5 people. It’s when a manager needs to be hands-on, coding and contributing. You’re able to spend more time mentoring, guiding, and really digging into the details of each team member’s work. Nevertheless, there’s a downside. It might be too narrow. You might end up micromanaging or dealing with too many layers of management. It obviously can make everything move way slower than it needs to.
On the other hand, a wide span of control over 10 people means fewer layers and faster decision-making. Nonetheless, it can overwhelm the manager. It’s like trying to keep up with too many spinning plates. In engineering teams, the sweet spot tends to be around 5-9 reports in my experience.
Why Seven Works
Seven strikes the right balance. From my experience and what I’ve seen, when a manager has about seven direct reports, they have enough bandwidth to give attention to each team member while also staying involved in higher-level strategic tasks. When you dip below that, like 2-3 reports, the manager isn’t really managing. They’re more of a peer or, worse, micromanaging. On the other hand, managing more than 10 or 12 people starts stretching the manager too thin, making it hard to build meaningful relationships with people, give proper feedback, or dive deep into the work.
Seven direct reports strike an optimal balance due to practical time management constraints. Consider the following simple formula to illustrate this:
To determine the optimal number of direct reports for a manager, let’s consider the total time required within a standard 40-hour workweek.
Total Time Required
- Meetings: N hours (assuming an hour per direct report and related project)
- Administrative Tasks: N hours (performance reviews, approvals, feedback, requests, interviewing, etc.)
- Coordination and Communication: 10 hours
- Strategic Planning and Execution: 10 hours
Coordination and Communication
This time is devoted to ensuring smooth operation within the team and effective collaboration with other parts of the organization. It includes:
- Team Meetings and Sync-Ups (2 hours):
- Weekly Team Meetings: Facilitating discussions on project updates, roadblocks, and upcoming priorities.
- Check-Ins: Brief meetings to align on daily tasks and identify immediate needs.
- Cross-Departmental Collaboration (2 hours):
- Interdepartmental Meetings: Coordinating with other teams to manage dependencies and align on shared goals.
- Stakeholder Engagements: Communicating with clients or senior leadership to provide updates and gather feedback.
- Communication Management (2 hours):
- Email Correspondence: Reading and responding to important emails from team members and other stakeholders.
- Messaging and Calls: Real-time communication to address urgent matters and facilitate quick decision-making.
- Conflict Resolution and Support (2 hours):
- Addressing Team Issues: Mediating conflicts, providing support, and ensuring a positive team environment.
- Resource Allocation: Managing team workload and reallocating resources as needed.
- Oncall Duties (2 hours):
- Availability for Urgent Issues: Being oncall means the manager must be ready to address critical problems that arise unexpectedly, requiring immediate attention.
- Postmortems: Providing guidance to team members who encounter blockers during their tasks outside regular hours.
Strategic Planning and Execution
This period focuses on higher-level responsibilities that drive the team’s success and contribute to organizational goals.
- Long-Term Planning (2 hours):
- Strategic Roadmapping: Defining the team’s vision, setting long-term objectives, and outlining the steps to achieve them.
- Budgeting and Resource Planning: Allocating budgets and resources to meet strategic goals effectively.
- Performance Analysis and Reporting (2 hours):
- Data Review: Analyzing KPIs to assess team progress.
- Reporting: Preparing reports for senior management to highlight achievements and areas for improvement.
- Process Improvement (2 hours):
- Workflow Optimization: Identifying inefficiencies and implementing solutions to enhance productivity.
- Adoption of Best Practices: Staying updated with industry trends and integrating them into the team’s processes.
- Professional Development Planning (2 hours):
- Team Growth Strategies: Planning training sessions, workshops, or mentorship programs to develop team skills.
- Self-Development: Engaging in activities that enhance the manager’s own leadership abilities.
- Networking: Building relationships within and outside the organization to facilitate collaboration and new opportunities.
- Innovation and Strategic Initiatives (2 hours):
- Exploring New Opportunities: Researching emerging technologies, market trends, or new methodologies that could benefit the team or organization.
- Pilot Projects: Initiating and overseeing small-scale projects to test new ideas before wider implementation.
Adding it all up
- Total Time = (N hours for meetings) + (N hours for admin tasks) + 10 hours for coordination + 10 hours for planning
- Total Time = 2N + 20 hours
To avoid overextending, the total time should not exceed a 40-hour workweek:
- 2N + 20 ≤ 40
Solving for N:
- 2N ≤ 20
- N ≤ 10
While technically up to 10 direct reports fit within the time constraint, this leaves no buffer for unforeseen issues or in-depth engagement.
Evaluating Specific Scenarios
- At N = 7:
- Total Time = 2(7) + 20 = 34 hours
- This leaves 6 hours for flexibility, deep dives, and unexpected tasks.
- At N = 6:
- Total Time = 2(6) + 20 = 32 hours
- Leaves 8 hours free, but the manager may be underutilized and risk micromanaging.
- At N = 8:
- Total Time = 2(8) + 20 = 36 hours
- Only 4 hours remain, reducing flexibility.
Therefore, seven direct reports provide a sweet spot:
- Efficient use of the manager’s time
- Enough bandwidth for individual attention
- Sufficient flexibility for additional responsibilities
This balance minimizes the risks of micromanagement associated with too few reports and the overextension that comes with too many, making seven the optimal number.
I believe an effective manager regardless of the hierarchy typically spends around at least 20 hours per week on responsibilities beyond direct report interactions. This is why managing approximately seven direct reports is optimal. It allows managers to effectively balance providing support to their team with fulfilling broader organizational duties.
What the Data Say
The data around span of control shows that the sweet spot for effective management typically falls between 7-9 direct reports. Quantum Workplace analyzed over 20,000 managers and found that engagement peaked with 8-9 reports. Managers with this span of control can maintain meaningful relationships with their teams without becoming overwhelmed by administrative duties. Too few direct reports (fewer than 5) leads to micromanagement, while managing more than 10 increases the risk of burnout and inefficiency.
Similarly, McKinsey highlights that in complex, dynamic environments like engineering, this range is optimal. They suggest that more intricate work requires closer oversight, making 7-9 reports ideal for balancing leadership and project management.
No One Size Fits All
From my experience, there’s really no one-size-fits-all approach to span of control. I know I just said 7 is the magic number, but hey, it depends! The reality is, it’s about context. If the manager’s more experienced, they can juggle more direct reports because they know how to delegate effectively and keep things moving. But if their team is full of juniors, the manager’s going to need a smaller span to really coach and develop them properly.
And let’s be real. If the manager is still hands-on, like contributing code or being involved in day-to-day execution, they’re going to need a smaller team. On the other hand, if they’re more focused on strategy and high-level decision-making, they can take on more people. It also depends on the type of work. Teams working on high-collaboration projects need more attention, while teams running more independent streams can get away with having a bigger span. So yeah, seven might be the sweet spot in some cases, but there’s definitely no hard rule here!
Alright, I’ll admit it. Seven is my magic number, but it’s not some universal law. Every manager and every team is different. I might swear by seven, but the reality is that no number works for everyone. There are a ton of variables that play into the ideal span of control, from the manager’s experience, to how self-sufficient the team is, to the kind of work they’re tackling. So yeah, while I’ll keep claiming seven is perfect, even I know it’s just a guideline. Don’t be afraid to call my bullshit. Just make sure you’re looking at your own context and needs before locking in that number!