How Many Direct Reports Should a Manager Really Have?
How many people should a manager directly oversee? It’s a classic organizational design question with no perfect answer.
Many companies lean on the “rule of seven”—the idea that a manager should have no more than seven direct reports. The logic is straightforward: with seven or fewer, a manager can devote enough time, attention, and coaching to each individual. Go beyond that, and the risk grows that some people slip through the cracks.
But like most rules, this one has trade-offs.
The Vertical Trap
If every leader in a large company is capped at seven direct reports, you quickly end up with layer upon layer of managers. The org chart starts to look like a tower rather than a network.
That’s a problem in fast-moving environments where adaptability is key. Flatter organizations tend to move quicker, communicate better, and adapt faster to change. Over-engineering management layers may create control—but it often does so at the expense of speed and innovation.
Context Matters
The right span of control depends on several factors:
Nature of the work – Complex, high-touch roles demand more manager time than repeatable, transactional tasks.
Level of employee experience – A team of seasoned professionals may need less oversight than a team of new hires.
Organizational culture – Some cultures thrive on autonomy; others expect hands-on guidance.
So maybe the real question isn’t “what’s the magic number?” but “what’s the right number for this team, this work, right now?”
A 21st Century Twist: Managing AI
And here’s the wrinkle for our times: in the age of AI, do we count AI tools as part of our team?
Think about it: if you’re managing a group of six people, plus you also rely on AI tools that generate reports, summarize customer feedback, or even help coach your team—are those tools “direct reports” in their own right?
Not in the human sense, of course. But they do require attention, oversight, and integration. A poorly trained or misused AI tool can be as disruptive as a disengaged employee. That means leaders must develop the skill of managing both people and technology—balancing time between coaching humans and governing machines.
The Future of Span of Control
Maybe the old “rule of seven” needs an update. Instead of a fixed number, perhaps the future of management is about balancing capacity across humans + AI.
A leader’s effectiveness won’t be measured by how many people they can directly manage, but by how well they orchestrate a blended team of humans and intelligent tools.
The real magic number? The one that allows leaders to give meaningful attention to their people, while also keeping their AI “partners” aligned, ethical, and effective.