The Art of Decision Delegation: Ensuring Confidence and Clarity at Every Level

How should executives delegate decisions effectively within their organisation? The art of decision delegation stands is as much of an art as science in effective management. This edition of our series delves into the profound insights of three seasoned professionals who share their strategies for empowering teams while ensuring each decision reflects confidence and direction. From assessing risks to leveraging the right tools and fostering a culture of trust, Victoria Medvec, Steve Finlayson, and Craig Carden offer actionable guidance to enhance delegation practices within any organization. Their experiences underline the crucial balance between empowering others and maintaining clear oversight, providing a roadmap for leaders to optimize team potential and organizational efficiency.

1. Sometimes the Smartest Decision is to Delegate Victoria Medvec - Negotiation Expert, Award-Winning Speaker, Bestselling Author, Professor

Leaders earn their keep by making smart decisions. But sometimes the smartest decision is to delegate that decision to someone else.

Every decision fits somewhere along a risk continuum. An ugly shade of green in the hallway is not necessarily going to damage the brand, but an ill-timed acquisition might—just as hiring a single underwhelming employee will have fewer consequences than the decision to outsource a functional area for twelve global offices.

I encourage leaders to approach decisions by first considering the riskiness of a decision and allowing that assessment to determine (1) who is involved in making the decision, (2) how much time should be spent, (3) how much certainty is required, and (4) what your tolerance is for error. These questions can help leaders make better use of their time—and empower their organizations in the process.

Who Gets Involved in Making the Decision?

A well-run company has the right people focused on the right risks. Ideally, the CEO and board of directors should only make decisions at the extremely high end of a risk continuum, leaving mid- and low-risk decisions to those further down the corporate ladder.

Unfortunately, this does not always happen. Too often, low-risk decisions get escalated up to the leadership team. This can happen for a couple of reasons. Sometimes CEOs act like vacuum cleaners, “hoovering” even the smallest decisions upwards. Other times, though, the problem is that the people below the CEO are unwilling to be accountable for mid-risk decisions and push them up to the top.

I once advised a CEO who was being asked to decide when his company should launch a product in New York. He was not even in New York and the riskiness of the decision was relatively low—it was not his decision to make. He concluded that this decision was on his desk because his team was unwilling to make the call and did not want to take accountability.

When I talked to his people, I heard a different story. They said that if you made a decision that was not what he would have decided, he would just re-decide anyway, so it was more efficient to let him decide in the first place. Regardless of whether the decision is sucked up to the top by the senior leader or pushed up from below, this escalation results in a number of predictable problems.

First, this type of escalation makes decisions take much longer. Time is wasted because decisions have to climb their way up through the org chart, and then back down. Time is also wasted because the senior executives being pulled into the decision often have very busy schedules, so it takes time to get the decision in front of them and provide adequate briefing on the topic.

Decisions that are escalated also tend to be more error-prone, as the people making the decision are further away from the data required to make the call.

Moreover, when the most senior leaders make every decision, they fail to empower people at the lower rungs of the organization and fail to develop their team’s decision-making skills. By pushing decisions down instead escalating them, leaders can build the decision-making muscles of their employees while making people feel more valued and trusted in their roles.

The reality is that every individual, including the CEO, has limited cognitive resources—resources that should be reserved for addressing the most fundamental issues facing the company at any given time. The biggest mistakes often occur when those at the top are using their mental energy on decisions that are not that critical.

How Much Time Should Be Devoted to the Decision?

In my experience, many organizations spend a disproportionate amount of time making low-risk decisions. I call this “inverting the risk continuum.”

Inverting the risk continuum can lead a company to lose focus of core business questions. I recently spoke to a group of leaders whose company had made a significant acquisition, one that doubled the company’s size. When I asked them to write down the most important decision they were making at that moment, 180 out of 200 said they were making a staffing decision.

“Most people tend to overestimate the risk of making a bad decision and underestimate the risk of inaction.”

To me, this was surprising. Staffing decisions—unless they involve positions at the highest levels of management—typically fall somewhere in the middle of the risk continuum. But this company was spending more time on staffing issues than they had spent making the much riskier decision of whether to go through with the acquisition.

To be clear, I am not saying that hiring is not important but rather pointing out that a hiring mistake of a single low- to mid-level executive is unlikely to take down a company or rock its share price. On the other hand, a single large acquisition that goes badly could destroy the business. So, more time should be allocated to these decisions than to less risky ones.

How Much Certainty Do We Need in Order to Make the Call?

Some leaders by nature tend to be more cautious than others—and there is nothing inherently wrong with caution. But it is easy to overanalyze mid-risk and low-risk decisions. To avoid paralysis by analysis, the level of risk should drive how much certainty is required: When is 70 percent enough? When is 50 percent sufficient? When should we just make the call based on our gut because the risk is so low that it would be better to revise the decision if needed later than to analyze it upfront? You want to save your analytic rigor for the important stuff.

It is critical to consider the level of certainty required because there is a cost to the analysis. There is the cost of completing the analysis and the cost of postponing the decision. Postponing a decision is a decision in itself. Most people tend to overestimate the risk of making a bad decision and underestimate the risk of inaction, and this can have real consequences in a competitive business environment. Postponing a certain decision might be the right call for a company, but it is never completely risk-free; there is always a risk to not acting, and sometimes the consequences are as dramatic as making the wrong decision. For example, a company may spend months analyzing whether a new product should be launched and in the time they spend deciding, their competitor launches a very similar product.

What Is the Company’s Tolerance for Error?

Most companies today claim to value innovation. We can find it in their mission statements or posted in large letters in their corporate lobbies. But innovation is only possible when you are willing to take risks. And in order to take risks, you have to be willing to get things wrong.

Leaders have a choice when it comes to tolerating error. Some choose to punish errors and reward overanalysis. Others actually celebrate mistakes. At 3M, it was hard to get promoted without having made a highly visible mistake that was widely discussed. That is not because 3M loved mistakes, but because they valued risk-taking, which they knew was the spark for innovation.

Instead of being universally cautious, leaders should focus on “de-risking” decisions by actively working to push decisions down the risk continuum. There are many ways of doing this. If a company wants to de-risk the launching of a new product, for instance, it can launch it in a smaller market, where its bugs will be less visible. Many startups live by the mantra “fail often, fail fast,” which makes perfect sense when dealing with low- and mid-risk decisions. But it may be less applicable to the higher end of the risk continuum. You do not want to fail often or fast at the core of your business.

What you do want is a company that encourages innovation and empowers its people to make decisions appropriate to their position. No amount of analysis will ever completely eliminate risk. But when leaders learn to assess that risk and focus on what really matters, they are far more likely to succeed.

• This article was written for Kellogg Business Insights

2. Delegation is not merely about offloading tasks; it is about empowering your team.

Steve Finlayson - Global Hotelier

The Art of Decision Delegation As an expert hospitality manager with over 30 years of experience spanning the United Kingdom, Africa, Asia, and Australia, I've learned that the art of decision delegation is pivotal for organisational success.

Delegation is not merely about offloading tasks; it is about empowering your team, fostering trust, and ensuring that each decision made under your leadership reflects confidence and direction. Setting Clear Guidelines The first step in effective delegation is setting clear guidelines. Your team needs to understand the boundaries within which they can operate. This involves defining the scope of their responsibilities, the extent of their decision-making authority, and the specific outcomes you expect. Clear guidelines prevent confusion and ensure that everyone is on the same page.

When I first started in the hospitality industry, I realised that ambiguity often led to mistakes and inefficiencies. Over the years, I've refined my approach to setting guidelines. I start with a comprehensive briefing session where I outline the project's objectives, timelines, and expected results. I also provide written documentation that team members can refer to if they have any doubts. This clarity forms the foundation of trust and empowerment.

Using the Right Tools In today's digital age, using the right tools is crucial for effective delegation. Project management software, communication platforms, and collaboration tools can significantly enhance efficiency and ensure that everyone stays informed. These tools not only facilitate seamless communication but also provide a transparent view of the project's progress. In my current role, I rely on tools like Trello for project management, Slack for real-time communication, and Google Workspace for document collaboration. These tools have transformed the way my team and I work, enabling us to manage multiple projects simultaneously while maintaining clarity and control. The right tools ensure that everyone has access to the information they need, reducing the chances of miscommunication and errors.

Fostering Trust Trust is the cornerstone of successful delegation. Without trust, your team will hesitate to make decisions, fearing repercussions if they make mistakes. Building trust requires time and consistent effort. It involves recognising and appreciating your team's efforts, providing constructive feedback, and being approachable. Throughout my career, I've made it a point to foster a culture of trust within my teams. I encourage open communication and create a safe space where team members can share their ideas and concerns without fear of judgement. By showing that I trust their abilities, I empower them to take ownership of their decisions and responsibilities.

Maintaining Control and Clarity Empowering your team does not mean relinquishing control. It is essential to maintain a balance where you provide guidance without micromanaging. Regular check-ins and updates are vital to ensure that the project is on track and to address any issues promptly. In my experience, weekly team meetings and one-on-one check-ins have proven effective in maintaining control and clarity. These meetings provide an opportunity to review progress, discuss challenges, and offer support. They also reinforce the importance of accountability and transparency. Sharing Insights and Experiences.

One of the most rewarding aspects of delegation is seeing your team grow and succeed. Sharing my insights and experiences has been instrumental in refining my delegation skills and enhancing organisational efficiency. I make it a point to mentor my team members, sharing lessons from my diverse experiences across different regions and cultures. For instance, during a major project in Asia, I faced significant challenges due to cultural differences and communication barriers. By sharing these experiences with my team, I help them understand the importance of cultural sensitivity and effective communication in decision-making. Such insights not only guide them but also inspire them to approach challenges with confidence and creativity.

In conclusion, the art of decision delegation lies in setting clear guidelines, using the right tools, fostering trust, and maintaining control and clarity. As a hospitality manager, empowering your team while ensuring every decision reflects confidence and direction is crucial. By sharing your knowledge and experiences, you can refine your delegation skills and enhance organisational efficiency. Remember, effective delegation is not about relinquishing control; it is about creating a cohesive, empowered team that drives success.

3. Leaders must discern the best individual for each responsibility.

Craig Carden - Transforming Accidental Managers into Emotionally Intelligent Leaders

The Art of Delegation The Art of Decision Delegation: Ensuring Confidence and Clarity at Every Level In the intricate dance of leadership, one of the most critical steps is the art of decision delegation. Effective delegation is not merely about offloading tasks; it involves a strategic selection process where leaders must discern the best individual for each responsibility.

This practice ensures that every decision made within the organisation reflects confidence and clarity. Drawing from ancient wisdom and modern science, we can outline a holistic approach to delegation that empowers teams while maintaining robust control and direction.

Ancient Wisdom: Thoughtful Delegation Ancient leaders understood the importance of thoughtful delegation. They recognised that delegating responsibility should never be an abdication of duty but rather a deliberate process of assigning tasks based on individual strengths and aptitudes. Historical texts and practices emphasize the need to match the right person with the right task. For instance, in ancient Chinese governance, the principles of Confucianism highlighted the importance of appointing officials based on merit and suitability rather than favoritism or convenience. This approach ensured that those entrusted with responsibilities were capable and trustworthy. Similarly, Roman military strategies often involved assigning soldiers roles that best matched their skills, thereby optimising the effectiveness of their legions.

Modern executives can learn from this ancient wisdom by carefully evaluating their team members' skills and aptitudes before delegating tasks. This approach not only enhances efficiency but also fosters a sense of trust and respect within the team. By recognizing and utilizing individual strengths, leaders can ensure that tasks are completed competently and confidently.

Modern Science: Emotional Intelligence and Personality Traits While ancient wisdom provides a foundational approach, modern science offers advanced tools to refine the delegation process further. Emotional Intelligence (EI) and understanding personality traits play a crucial role in effective delegation. Emotional Intelligence, popularised by psychologist Daniel Goleman, encompasses self-awareness, self-regulation, motivation, empathy, and social skills. Leaders with high EI can better understand their team members' emotional states and motivations, allowing them to delegate tasks in a way that aligns with each individual's strengths and preferences. Incorporating personality assessments, such as the Insights Discovery or the Big Five Personality Traits, can also enhance delegation strategies. These tools provide insights into team members' inherent characteristics, such as introversion vs. extroversion, openness to experience, and conscientiousness. By understanding these traits, leaders can assign tasks that not only match skills but also align with personality strengths, thereby boosting performance and job satisfaction.

Strategies for Effective Delegation To implement these principles effectively, executives can adopt several strategies: 1. Conduct regular assessments to understand each team member's skills, strengths, and areas for improvement. Use this information to delegate tasks that match their abilities. 2. Establish clear objectives and expectations for each delegated task. Provide necessary resources and support to ensure team members can complete their tasks successfully. 3. Trust your team members to carry out their responsibilities. While maintaining oversight, allow them the autonomy to make decisions within their purview. This approach builds confidence and encourages innovative thinking. 4. Leverage modern tools like project management software to track progress and ensure alignment with organisational goals. Tools such as Trello, Asana, or Slack can enhance communication and coordination. 5. Offer constructive feedback and recognise achievements. Acknowledging efforts and successes fosters a positive work environment and motivates team members to perform at their best.

By blending ancient wisdom with modern scientific insights, executives can master the art of decision delegation. This holistic approach not only enhances organisational efficiency but also ensures that every decision made reflects confidence and clarity. Through thoughtful delegation, leaders can empower their teams, foster a culture of trust, and drive their organisations toward sustained success.