forged under pressure, the diamond organisation: reshaping middle management as the engine of future value
For decades, the org chart has been defined by the triangle: a strong base of frontline employees, a narrowing as managers increase in seniority, and a sharp tip of executives. This shape suited the industrial and early digital age, when information moved more slowly, and layers of management ensured accountability and drove efficient decision making at scale.
Today, however, that triangle is under pressure - pressure from AI, automation, machine learning and shifting workforce expectations. And under that pressure, something new is emerging: the diamond organisation.
why the triangle is breaking down
Traditional hierarchies were designed to handle the flow, processing and interpretation of information in organisations: leaders set the direction and managers interpreted that direction as actions which were cascaded through their teams to improve performance and execution at the front line. But as digital systems now capture, analyse and distribute data and information in real time, the rationale for much of that traditional middle layer has disappeared.
AI platforms provide accessible predictive insights once only available to executives. Automation streamlines workflows, reducing the need for constant supervision. Machine learning identifies risks and opportunities before humans can. And people consistently seek for greater autonomy, purpose, and impact at work.
The result? The traditional middle layer is increasingly redundant and is rapidly evolving.
the diamond structure
In the diamond-shaped organisation, the peak of executives and a smaller base of frontline employees (enabled by automation) remain, but the middle evolves to create greater value, taking on new weight and importance.
Middle managers no longer play the role of managing process; instead, they are:
Specialists, applying judgement where algorithms cannot
Sense makers, asking the right questions, creating opportunities to act and aligning with strategic direction
Connectors, joining the dots across teams bringing together the magic of human creativity with technology-driven insights
Some might argue that the best middle managers have always acted as specialists, sense makers and connectors - and we’d agree. But for too long, this vital contribution has been undervalued or obscured by the process-heavy expectations of traditional hierarchies. Now, as AI reshapes how information flows and decisions are made, the true value of these roles is coming into focus.
middle management as the value layer
This new structure demands a different mindset, middle managers must be supported to develop as gurus of adaptability, expertise, and technology integration.
Leaders are recognising that:
Managers need data, tech & AI fluency, not to code but to question and contextualise
Coaching, influence and empowerment must replace supervision and control
Measurement should shift from efficiency alone to adaptability and collaboration, evaluating how managers enable resilience, cross-functional working, and a thriving organisational culture, not just output
forging the diamond: building organisations that are fit for the future
The shift from triangle to diamond isn’t just a visual change - it’s a conscious act of design. For businesses to thrive in this new shape, leaders must focus on two connected challenges: how they build the organisational capability and how they empower people within it.
The diamond’s strength depends on how mature your operating model is: the systems, processes, and technologies that enable agility and insight. Automation, AI, and machine learning are key to this foundation, driving speed, adaptability, and smarter decisions. When combined with clear processes, quality data, and strong governance, these tools give the organisation the freedom to move faster and create new forms of value.
At the same time, middle managers need support to build new capability as specialists, sense makers and connectors to support cross-functional problem solving, blending human and digital intelligence, and fostering resilient teams.
When an organisation invests in both its capabilities and its people to consciously create a ‘diamond’, value no longer flows up, or down your organisation, but shines from the middle.
So the question is stark: is your organisation a triangle, or, are you reshaping it to reflect how value is really created today?
At Egremont Group, we help leaders design and embed organisational structures that unlock potential, creating clarity in how value is created and work gets done, fostering connection across teams, and inspiring commitment to shared purpose. If you’d like to learn more about forging your own diamond organisation, reach out - we’d love to continue the conversation.