The secret to very good managers I've worked with is that they realize that the staff working under them does have more talent than the management does. Like a sports team, the manager of the team can rarely accomplish what the athletes can. The manager may have been a great athlete in their past, but usually they were not.
Good management realizes it is their job to have all the things that the team needs in place so the team can perform at peak efficiency. They should take care of all of the logistics involved in getting the players and the equipment ready to perform. A great manager can often drive the strategy for the team, but this is not always necessary. Many great manager will just as often will employ others to provide the strategic planning.
Org charts should really be drawn in the other direction, with the highest level management at the bottom. management is there to service the organization, keep it tuned up and well oiled, keep it pruned and growing in the right direction.
The organization described in this article was of about 40 people. The tasks the former chief executives performed were analyzed and found to be tasks that could be performed by others in the organization. For an organization of professionals, experienced in their work, this seems completely reasonable and not revolutionary at all.