The quality of a business is equal to the quality of decisions made in and for it each day.
Decisions implement strategy
Because decisions are key to building a great business, and you personally can’t make all decisions needed on a daily basis, understanding delegation is important.
Most of the time, a central leader or manager must still make the decisions, but they can’t look into every one in depth. So they have the others do the research and “looking into”. These researchers then delegate the actual decision back to the manager.
The process and expectation with your company of how this occurs makes a huge different in
- how fast your company grows
- what type of people you develop
- what type of culture you instill
Let’s look at this from the perspective a researcher who has been asked to look at a decision and is now passing that to the decisions maker for a clear answer.
Levels of Delegating
There are three levels of delegation
- Data Dump
Data Dump Delegation
In a data dump delegation, you pass all the information you have gathered off to the decision maker in order for them to decide or implement what you have been looking into.
This requires the delegatee to re-learn everything you already looked into in order to make a good decision. It unnecessarily repeats the learning curve multiple times.
Data Dumps are
- Laziest of delegations
- Least effort on part of delegator
- Most effort on part of delegatee
- Least Efficient
- Most time needed for decision
This type of delegation results in the lowest amount of quality decisions made per unit of time. So compounding is slow and the results take a long time to see.
In a concise delegation, you consider what the decision maker needs in order to make the decisions. You then present that information in its simplest form.
The best way to consider what someone needs to make a decision is to consider why they might negate a request or decision on that topic. For example, why would they say “no” to a decision to expand or not?
These usually fall into three categories
- Resources - the resources to carry it out successfully are not available or attainable.
- Strategy - the decision does not fit with what the group or team is attempting to accomplish. In other words, it is outside the scope fo the current direction of the group, division, or company.
- Risk - There is too much risk of loss without an appropriate upside.
So when presenting a concise delegation, first share
- What resources are needed and where they will come from
- How it fits into the current strategy or direction
- What the possible losses are, how they will be mitigated, and the possible returns that are attainable.
Concise Delegations results in
- Quality decisions being made easier and quicker
- Higher level of quality decisions made per unit of time
- Less wasted time “familiarizing” with the details per decision
This is more of a shared intention than a delegation. In this form, you state what you intend to do and what information you are basing this off of. In this case, you have already made the decision and are just waiting for it to be “signed off on”.
This is the best way to grow leadership internally as you provide a way for others to make decisions as well as check the “thought processes behind each decision” before moving totally autonomy over to them.
You also have many more decision makers in this case and can thus exponentially increase the number of quality decisions your business is making.
With Intent Delegation, you can
- Exponentially higher number of quality decisions per unit of time
- Most efficient
- Build leadership
Purposefully setting how decisions are made and delegated can be the different between growing 5% each year or 50% year; between implementing 5 projects a year or 1 project every 5 years.