B2B managers often oversee some of the largest and most complex teams in the world. They can span entire continents and encompass 20+ departments, depending on the company’s size.
Without sufficient organisation, even the most talented teams can suffer, causing productivity to nosedive and company results to skew. As such, most B2B organisations today operate with hierarchies, ensuring clear roles, responsibilities, and a defined structure for decision-making.
But, in reality, rigid structures can quietly stifle innovation and limit growth, often without leaders realising it.
While many executives may consider hierarchies essential, it’s crucial to recognise that rigid B2B management structures can also create significant risks.
Some B2B companies have highly centralised teams, where a select number of managers oversee up to 20 individuals, onboarding, training, guiding, reviewing, and reporting to a senior leader higher up in the chain.
Of course, there are benefits to these structures, including clearer lines of authority, efficient decision-making, and a sense of control for some employees. However, they also unintentionally stifle innovation.
Because the chain of command tends to be long and clearly defined, with information flowing upward and downward but rarely sideways, employee voices are often diluted.
With middle managers under pressure and senior leaders distanced from day-to-day realities, over time, employees naturally become hesitant to challenge ideas, propose new initiatives, or take ownership beyond their defined roles, knowing their input is buried under layers of approval.
Worse still, without space for autonomy, critical thinking, or cross-functional collaboration, employees struggle to develop the motivation and skills needed to grow.
Instead, fresh talent is hired to fit the mould, essentially creating a paradox.
The very structure designed to provide stability limits potential, stalls innovation, and fuels high turnover.
And in B2B environments, already characterised by high pressure, long sales cycles, and complex client relationships, this only adds further strain to team morale.
It's worth re-emphasising the dangers of draining creativity within B2B firms, where it's often essential.
Employees can't develop unique and novel products.
Services can stagnate, causing clients to leave.
Marketing strategies can overlook promising markets.
Crises become tougher to solve.
The list goes on. And it's relevant to every industry.
This is why B2B management teams should be doing everything they can to empower their teams to think outside the box and continuously invest in innovation, no matter what it takes.
Solving this issue doesn’t necessarily mean dismantling the entire hierarchy. Doing so could lead many companies toward collapse.
Instead, B2B managers must reassess their culture, specifically focusing on improving management practices that prioritise collaboration and empowerment.
After all, when employees feel appreciated, research by Gallup shows they are 4.6 times more likely to perform at their best.
In practice, there are numerous steps B2B companies can take to lay the foundation for a collaborative culture.
But above all, employees need to be trusted from the moment they’re hired. This means B2B leadership teams are transparent about what they expect, how the company is performing, and the vision for the future.
Leaders should also be willing to admit when they don’t have all the answers, seek input, recognise contributions, and create feedback loops where ideas are genuinely acted upon.
When employees see their insights leading to tangible outcomes, whether it’s a product improvement, a shift in strategy, or better ways of working, collaboration becomes ingrained.
Leaders can further embed this by encouraging cross-functional projects, investing in technologies that improve communication and workflow, and continually re-evaluating internal processes to reinforce a sense of belonging, rather than employees being siloed in their roles.
While some leaders shy away from this approach, prioritising speed or fearing that transparency might dilute their control, it’s usually because the company hasn’t historically operated with openness.
But with consistency and commitment, even large, established firms can successfully transform their culture.
Whether a founder has a sudden revelation, or more likely, a new CEO joins with a mandate to modernise the company, the tone they set matters.
At first, leaders must analyse the current climate, especially if they are far removed from teams or managers haven’t been honest about what’s really going on beneath the surface.
Then, they need to dedicate time to initiate a cultural reset through company-wide meetings, newsletters, and team-building events.
They must show they genuinely care about current frustrations while outlining a new vision for the company.
B2B leaders should brief managers on the behavioural expectations for their teams and set regular intervals to assess team sentiment and satisfaction.
Of course, it can take time to see results following a cultural shift, but the commitment is certainly worthwhile.
B2B startups are at a huge advantage, considering that their hierarchies are much flatter. So, there's no excuse for not establishing a collaborative culture early.
If anything, when startups do enforce an overly rigid hierarchy, they risk imploding before they can get off the ground.
Most people join startups for the chance to make a significant impact and progress quickly in their careers, which is often less realistic when unnecessary structures hinder momentum.
Instead, by encouraging entrepreneurial thinking and ownership from the start, B2B startups can significantly outpace their competition and create long-term impact in ways larger firms might struggle to.
This is as simple as creating ambassadors that stay with the company and reducing the need to constantly re-hire.
Making progressive changes is one thing. Communicating those efforts is another.
Failing to do so can leave key stakeholders in the dark, limiting opportunities for investment and meaningful partnerships, which are just as essential as having employees engaged.
Of course, corporate messaging is part of reaching these stakeholders. But what truly sets B2B companies apart is how visible their leaders are across the press, social media, and industry events.
Rather than echoing company values, visible leaders embody them publicly, offering insights on industry trends, sharing progress transparently, and demonstrating the cultural shifts they’re championing internally.
On one hand, leaders build better brand trust.
On the other hand, they show others across their industry and beyond what a healthy culture can do for a company, positioning themselves as credible, forward-thinking voices.
Company culture is a huge trend right now, with social media conversations thriving and industry publications looking for leaders who can provide authentic insights into the evolving business landscape.
By taking advantage of this, B2B companies can multiply their online visibility and engagement through their founder, CEO, or other senior executives, in ways they never have before.
Best of all, it doesn't matter what industry you operate in, organisational culture is a powerful, easily accessible, and universal topic. So, it should never be overlooked.
Learn more about our B2B leadership consultancy services here.