For Global Capability Centers (GCCs), effective managers make all the difference. Leaders who oversee diverse, distributed teams look for ways to improve manager effectiveness. With AI, GCC leaders can shape and support manager behaviors. This, in turn, will drive their team to better outcomes.
Artificial intelligence is transforming workplaces like never before. Yet, in the race to be AI-first, many business leaders overlook their best asset. Their managers. This article examines why managers are crucial to success, now more than ever. And how leaders who use technology to support and shape manager behaviors rather than to replace them will see more success.
According to Gartner, “Through 2026, 20 per cent of organizations will use AI to flatten their organizational structure, eliminating more than half of current middle management positions.”
Are middle managers becoming redundant?
Why Managers Matter
Analysts warn that “digital avatars, language software, and conversational interfaces” will soon make middle managers obsolete. Is that possible? What do managers do that supersedes what any AI tech can do?
Managers are crucial to shaping culture
Workplace culture expert Heather Younger defines corporate culture as the behaviors that a business exhibits or allows in their workplaces. These are usually an outworking of the values and beliefs of the organization. And culture flows from people whether they are online or face-to-face. [Watch her <5-min culture definition].
The most important agent of culture is not the townhall meetings, notices pinned up or even how leaders behave. In GCCs, where teams often span geographies and cultures, its managers who establish a cohesive workplace culture. Middle managers and immediate supervisors are the ones in the middle – between the management and the frontline – shaping the culture in day-to-day interactions. They ensure that global business values align with local team dynamics.
Culture has to be run by the last two layers of hierarchy, the managers. We work for our managers. We leave managers and we join managers.
Managers bring your business objectives to life
Middle managers are responsible for day to day operations and ensure that business objectives are translated into achievable goals by their teams. They have in-depth knowledge of how each department works and can spot trouble a mile away. It is said a good middle manager knows what to do, how it needs to get done and how long it will take to do it. Additionally they know the individuals on their team and know exactly how to place each one in their areas of strength.
Managers are key to employee engagement
Gallup’s 2024 State of the Workplace Report says that managers account for 70% of variance in employee productivity. According to the report, effective managers motivate their teams members and drive engagement. They do this through regular goal setting, frequent feedback, helping employees find both “meaning and reward in their work.”
Managers as Coaches not Supervisors
The role of a manager as supervisor is giving way to a much richer form best described as high-performance coaching. High performance coaching is a process that helps people reach their full potential in any area of their lives.
High performance coaching has its roots in sports but has made its way into boardrooms. Today AI technology like worxogo Nudge Coach makes it possible for managers to take this high-performance coaching to each individual on the team.
In the workplace, this would mean coaching day-to-day behaviors of team members vis-à-vis their objectives or Key Performance Indicators (KPIs). [Read more on how to make your managers into coaches]
In GCCs, the shift from supervision to coaching is even more critical. Managers often work with highly skilled teams who need guidance, not micromanagement. AI-powered coaching tools provide managers with real-time insights on performance – in dynamic sectors like financial services, healthcare, or logistics.
Support managers with AI
Often these exceptional managers are buried under reports and data, a global trend. Teams get data on things that don’t impact their function. Often the data is not available in a form that converts into usable action.
This is where AI is most beneficial. Click to read how AI can help managers convert their data into actionable insights.
For GCCs handling complex processes like claims management or customer support, AI tools help managers cut through too much data. They can focus on action, ensuring that their teams work on what matters most to the business.
Shape Manager Behaviors with AI
An idea that is gaining ground, is using AI to get insights on manager behaviors. Managers are prone to biases and heuristics like anyone else. Leaders can use behavior-tech to recognize and overcome these limitations.
Help your managers frame their communication
How do your managers communicate with their teams on the ground? Do they tend to focus on the positives or the negatives? Are they encouraging or demanding? What tone do their messages contain? Is their communication with the team effective or is it creating resentment? AI tools can give you an insight into your managers’ communication styles.
In a study conducted in partnership with worxogo, Stanford researchers found that positive valence was more effective with teams than negative valence. In simple words – people respond better when they receive positive messages.
For GCC managers handling cross-border teams, AI tools can provide insights into how communication styles impact team dynamics. For instance, a manager leading a customer support team might need guidance on balancing efficiency with empathy in their messaging.
You can now help your managers with research-backed tips for effective communication. So you can step in and guide the communication to match your objectives and the team dynamics.
Reinforce the good
Catch them doing it right! AI tools can help leaders track manager/supervisor feedback instances across the team. Leaders should celebrate their managers who consistently give their teams feedback. According to worxogo’s research, managers who give their teams feedback 4 times or more a month have more productive teams. Leaders should exemplify this habit of frequent feedback for their managers.
GCCs thrive on consistency. Using AI, leaders can identify managers who are consistent in giving balanced feedback. For instance, in a logistics GCC, managers who regularly acknowledge their team’s successes while addressing bottlenecks build a more productive environment.Moreover leaders can also get a view of how each manager covers their team – focussing on middle performers, not just the highest and lowest performers. Once again, positive reinforcement will encourage managers to focus on the middle and reap the benefits.
Highlight focus areas for the business
Are your managers aligned with your business priorities? You might think so. But how would you check this?
Behavior-based AI tools help you uncover what your managers drive in their teams. Which KPIs do they emphasize? What behaviors do they encourage? What actions do they discourage or correct in their teams?
In GCCs, where priorities can shift quickly due to global market demands, leaders must ensure managers stay aligned. For e.g., in a retail GCC, AI can give insights on how managers are driving seasonal sales targets across their teams.
With these insights, you can guide your managers to focus on the right goals. Align their efforts with your priorities. And ensure they’re creating the impact your business needs to succeed.
AI can do more than data – it can put the data to work for you.
Use AI to Build Better Managers
In GCCs across industries like insurance and banking, behavior-based AI tools enable leaders to boost manager effectiveness and performance. AI tools provide detailed insights into how managers lead, communicate, and motivate their teams, ensuring alignment with global goals.
worxogo Nudge Coach is the only behavior-based technology that gives you manager-insights from actual interactions between your managers and their teams.
If you’re leading a GCC and want your managers to be the driving force behind your success, behavior-based AI tools can give you the edge. Talk to us to see how these tools can transform your managers into high-impact leaders.
