DECENTRALIZATION, DEVELOPMENT, DELEGATION

Steven Cesare, Ph.D.

An overwhelmed business owner from Illinois called me the other day to vent about how much responsibility confronts him on a daily basis. Doing $7,000,000 of annual revenue, the owner has taken on innumerable operational responsibilities (e.g., overseeing labor schedules, reviewing departmental gross margins, analyzing BOSS reports), revenue functions (e.g., selling new contract and design-build work, approving all enhancements proposals, proofreading all maintenance bids), customer contact (e.g., attending networking sessions, doing job walks, addressing customer complaints), and of course, administrative tasks (e.g., reading insurance renewals, monitoring the IT network, tracking all material purchases).

“Yes.” Much of that is his own doing; mentally, he is still running the company as if he was working out of his garage with four other guys, instead of overseeing a workforce of 80 field and office employees. But behaviorally, it is taking its toll on him: physically at home and at work; emotionally, in that he is so task-oriented he does not have time to experience joy, happiness, or peace; as well as personally, to the degree that he does not appreciate his company’s stature, his individual successes, and his intrinsic well-being.

Have you ever met anyone like that?

Yeah. I know the same person.

During our arduous discussion, I objectively reminded him of the inevitable consequences of his continued operating routine, including holistic burnout, increased psychological distance from family members, and a sense of executive narcissism that promotes inexorable withdrawal, isolation, and alienation.

But, Steve, it’s lonely at the top.

Duh. But, why did you go there alone?

As a capitalist, I focused on his work mindset, offering the three-step plan of Decentralization, Development, and Delegation. There is no quick fix; everything good, takes time. There is no easy solution; change is difficult. There is only one root cause of the problem; does anyone have a mirror we can borrow?

Decentralization. Decentralization is the process of shifting control, authority, and responsibility from one person (i.e., the business owner) to several other employees. Save the rhetoric: I don’t have time to hear the self-indulgent platitude that “If you want something done right, you have to do it yourself.” That’s a lie. Worse than that, it is a childish defense mechanism of an owner lying to him/herself, rooted in egotism.

Flatten the organization chart. Give them signatory authority. Stop being the single decision-making locus. When someone asks a question of you, return the question to them seeking their potential solutions. Decentralization is premised on proximity: The person closest to the problem, customer, or issue should know the most about it, and its resolution. Let him, her, or them make the decision, and live by the results.

Development. That’s nice to say, Steve. But mistakes are going to happen! And you’re perfect, Mr. or Ms. owner? What happens when you’re not at work? Do you shut down the company? Teach your employees how to fish. Work with your Managers, Supervisors, and office staff. Have ongoing team meetings to coach, train, and empower them on real-world incidents to become better decision makers. I know most employees nowadays are so risk averse that they do not want to make any decision fearing they will be wrong. In response, design a series of individualized, departmental, and company culture development plans illustrating the path to a more confident decision-making framework. To repeat: It takes time, be patient.

Delegation. With the decentralized organizational chart in place and the development plans underway, begin to delegate tasks, functions, and issues to other employees. Establish the goal, stipulate the time line, coach them procedurally, and provide them with constructive feedback and reinforcement accordingly. Circle back with them during your one-on-one meetings. Listen, coach, guide, and continue to delegate.

If you don’t like this model, feel free to disregard it. And then, let me know how much fun you’re having at the top. Alone.

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