Conducting Span of Control Analysis

Step-by-step guide to analyzing and optimizing management structure

Learn how to identify opportunities for organizational efficiency by analyzing span of control across your organization.

What is Span of Control?

Span of Control (SOC) refers to the number of direct reports a manager has. Analyzing SOC helps identify:

• Under-utilized managers (too few direct reports)

• Overburdened managers (too many direct reports)

• Compression (managers reporting to managers with similar responsibilities)

• Opportunities for flattening the organization

Step 1: Access the Span of Control Matrix

1. Navigate to Workforce Hub from the homepage

2. Find the Layers and Spans of Control chart

3. This gives you a bird's eye view of your entire organization

Step 2: Configure Your View

Customize the groupings to match your analysis needs:

1. Click the settings gear icon

2. Adjust SOC ranges:

   • 0-0 (Individual Contributors)

   • 1-2 (Low span)

   • 3-9 (Optimal range)

   • 10-15 (High span)

   • 16-25 (Very high span)

   • 26+ (Unsustainably high)

3. Click Save

Pro tip: Remove the "0-0" group if you only want to analyze managers.

Step 3: Identify Patterns

Look for these red flags:

Too Many Low-Span Managers

• Large numbers in the 1-2 column suggest potential compression

• May indicate opportunities to flatten the organization

• Common in layers 5 and 6

Very High Spans

• 16-25 or higher may indicate:

  • A need for additional management support

  • Or a well-functioning team with low complexity

Context matters! High spans aren't always bad - it depends on:

• Team standardization and process maturity

• Geographic distribution

• Role complexity

• Manager capabilities

Step 4: Drill Down with Org Chart

Use Spotlight to find specific managers:

1. Go to Main Org or open a scenario

2. Click Spotlight

3. Select Average Immediate SOC

4. Set range (e.g., 1-2 for low span)

5. Click Apply

Now you can visually see all managers with that span range highlighted!

Step 5: Investigate Context

For each flagged position, ask:

• Is this a new team still ramping?

• Is there a business reason for this structure?

• Are there pending hires that will balance the load?

• Is this manager also an IC (individual contributor)?

Step 6: Model Solutions in a Scenario

Create a scenario to test potential changes:

1. Create a Partial Org scenario for the affected department

2. Try different structures:

   • Combine teams with low SOC managers

   • Split teams with very high SOC

   • Add manager layers where needed

   • Remove layers where possible

3. Use the OpEx Panel to see cost/headcount impact

Step 7: Compare Options

Create multiple scenarios to compare approaches:

• Scenario A: Combine two low-span teams

• Scenario B: Add a manager layer

• Scenario C: Status quo

Use Scenario Comparisons to view side-by-side metrics.

Best Practices

Industry Benchmarks

• Optimal span: 3-9 direct reports for most organizations

• Executive level: 5-7 direct reports

• Frontline managers: 7-15 direct reports (depending on complexity)

Red Flags to Watch

• ⚠️ More than 30% of managers with 1-2 direct reports

• ⚠️ Spans exceeding 20 without clear justification

• ⚠️ Inconsistent spans across similar roles

• ⚠️ Deep hierarchies (8+ layers) in smaller organizations

When to Act

Prioritize investigation when:

• Spans are outside optimal range AND

• There's no clear business justification AND

• It's causing operational issues (delays, bottlenecks, dissatisfaction)

Next Steps

After your analysis:

1. Document findings and recommendations

2. Share scenarios with stakeholders

3. Get approval through the approval workflow

4. Implement changes thoughtfully with change management

Related Resources

• Span of Control Metrics - Understand the calculations

• Scenario Creation - Model your changes

• Planning a Reorganization - Full reorg workflow

Visual Guide