Senior executive design principles

Principle 1: Structures based on strategic and corporate objectives

The design of department and agency structures and roles should be approached in terms of the functions and roles required by the agency to deliver on its strategic and corporate objectives.

Principle 2: Minimal executive layers

As a general principle, there should be no more than 3 executive reporting layers below the Secretary in larger departments and agencies. This excludes where there is a reporting line from an Agency Head/Chief Executive Officer into a Secretary.

The optimal number of organisational layers within a department or agency depends on the nature of the work and the context within which the department or agency operates, it is recommended that the number of reporting layers within an organisation are between 5 and 7.

In determining the right number of layers, it is critical to:

• provide the fastest and most effective way to make decisions and manage accountability and risk
• empower to enable decisions to be made at the lowest appropriate level where capability exists
• align decision making authority with the functions and roles that are closest to the issues and facts
• minimise hierarchy complexity and improve communication.

The size of the organisation also plays a role, with smaller organisations typically needing fewer layers, while larger, more complex, or functionally diverse organisations may require more. For example, emergency service agencies can have more hierarchical complexity.

It is important to distinguish organisational layers from role classification levels, as a single organisational layer can encompass a range of classifications. For example, a Secretary may have direct reports at various senior executive band levels as well as non-executive levels.

Principle 3: Intra-band reporting

A blend of classifications can exist at any organisational level. Intra-band reporting should only occur in circumstances where there is a high level of independence for the intra-band report. This may include technical or subject matter experts when there is a compelling business case and where alternate reporting arrangements would be inadequate.

Principle 4: Spans of control benchmark

While a benchmark of 5–7 direct reports remains a useful guide, the appropriate number of direct reports will vary depending on the nature of the role, the complexity of work, and the functional environment.

For highly specialist or technical roles that are required to exercise significant decision-making authority, or are engaged in time-bound, project-based activities, a narrower span of control may be required to ensure effective oversight, support and risk management. In these circumstances, spans of control may fall below the general benchmark to reflect the need for close engagement and specialist guidance.

Conversely, in high-volume, standardised service delivery settings - such as large operational teams or transactional environments - spans of control may be broader, and the number of direct reports could significantly exceed the benchmark range. In these instances, the work is generally more routine, processes are well-established, and managerial oversight can be reasonably distributed across a larger cohort.