One of the beliefs of modern business management and management gurus is that ‘middle’ size entities both in Manufacture and Services and ‘middle’ management tiers will disappear over a period of time due to technology progress and intense competition which requires large Goliath size entities.  The very small businesses will remain but the ‘middle’ layer in business and international politics will disappear.

This hypothesis may be faulty due to the following reasons:

1. Business Environment-

A human body cannot hold itself together, if it does not have a middle body. The middle of a human being expands and contracts with Age. Similarly, all markets whether of products or services must have a middle layer of enterprises which are holding the market together and not allowing the same to dis-integrate.  It is a matter of business aging and maturity.

There will always be middle sized enterprises, because the large enterprises cannot possibly manage the full range of inputs that go into a product or a service.  Cost efficiencies will always play a Role.

These middle enterprises may not be able to compete with the large players on the product itself but can serve as feeder to the large entity for intermediate products which go into the final manufactured product. Similar situation in the case of services.

The large players will need the help of the ‘middle’ players for some aspects of products & service delivery – the final output of course will – like in the case of both manufactured products or professional services – carry the name of the Big Market player.  The middle players may have a Role change. Instead of competing on full product / service delivery with it’s contingent costs and sometimes inefficiency, middle players will compete on their selected niche competencies.  Size is never everything.  Speedy response and new fresh thinking and actions will determine market presence.

We need to understand that the market has space for all players provided there is ‘value for money’ pricing and good quality of product and service.  In fact, ‘middle’ players with quality goods and services will become much sought after.  Already, it is noticed that technology is a double edged sword.  Many small / middle players are giving the Giants a run for their money thru technology upgraded products and services (particularly in IT and Medicines), which the Giants have not even thought of.  Giants develop bureaucratic and compartmentalised thinking.  The ‘middle’ can think with fluidity which the Giant will ultimately covet.

1. Management –

All human effort / activity needs to be produced, protected, checked, verified, tested, captured, reported, quality conscious – if it needs to be able to sell itself in the market place.  That Role of preparation is played by Middle Management.

One of the great deceptions that is being attempted today is that Artificial Intelligence will to a very great extent delete the Role of ‘Middle’ Management.  Already, we are hearing of investments in AI by large corporates which are not paying back.  The impact of this failed Investment will clearly become more and more evident.  Corporates who have gone deep in AI may find their results destroyed and capital markets sharply reducing their Valuations.

Corporates and Service Providers will need to take a reasoned view whether their Activity was better served by Humans in Middle Management or by investments in AI which are not delivering adequate Returns.

One of the great illusions that Technology generates by a lot of noise and fanfare is that it is ‘path breaking’ and unique.  It is only after the ‘herd mentality’ has taken over is a real evaluation of the monies spent done and in a majority of cases, it is found that the supposed advantages come up short in outcomes.

‘Middle’ management is the instrument by which senior management gets a ‘feel’ of business and markets shifts.  The human element of judgement, decision making, weighing multiple factors, reporting on business issues and evolving an improved work method cannot be easily replicated.

We are constantly told that ‘machine learning’ is improving and will soon take over Human Roles.  As a Human, I believe that this is a big challenge but human thinking will conquer machine thinking.  The ability of humans to visualize alternatives and implement them cannot be so easily replicated or defeated. ‘Out of the Box’ thinking is possible only by humans.  The machines may become more efficient, more intelligent but they cannot do ‘alternate thinking’.

1. Middle Countries / Powers –

There is no doubt that World Economic Growth is no longer being powered by First World developed nations.  Even if China, Japan and Russia are considered as First World developed Countries, it is the Middle Powers like India, Brazil, Mexico, South Korea, Vietnam, Israel, MidEast countries, Iran that are really driving the World Economy.  It is evident that trade with / between nations that are called the ‘Global South’ is the fastest growing component of international trade today.

While the balance of economic power is still with the developed world, the incremental world growth is increasingly powered by nations not in that grouping.  The World would do well to note that shift and recognize it.  ‘Global South’ is increasingly asserting itself and will demand a greater say in the way International Institutions and International Trade are run.  A handful of developed nations will not be able to dictate full terms.

1. Conclusion-

We are in very interesting times now when the World Order is getting recast and reshaped.  The death of the ‘Middle’ in Business, Politics and Employment seems to be overblown and overemphasized in a very simplistic manner.  We would do well to do a rethink on what is being hammered as great ‘guru gyaan’ today.  The Middle has always played an important Role and it does not seem to be collapsing.

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