This weekend, I tuned into two inspiring TED Talks – “Great Leadership Comes Down to Only 2 Rules” by Peter Anderton and “On the Impact When Everyone is a Leader” by Gitte Frederiksen. As I reflect on these sessions, I can’t help but relate them to the daily challenges in my professional life.
Leaders as potential bottlenecks
In the ever-evolving business landscape, leaders bear the weighty responsibility of steering their organizations through impactful decisions. This responsibility is woven into the very essence of organizational leadership. However, a critical examination reveals a potential stumbling block: the leader becoming a single point of failure, a bottleneck that can hinder progress. It’s a scenario I encounter regularly. Decision-making, I’ve learned, is an art where one either learns or succeeds – there’s no middle ground. Effective decision-making involves taking a leap of faith, and the most successful leaps happen right at the source of the problem, not at higher organizational levels. As one ascends the hierarchy, they tend to have less information about the day-to-day operations that are crucial for informed decisions that could cause decision paralysis as they seek more and more information and analysis to cover their bases.
Decentralized decision-making for agility
Organizational challenges, it appears, don’t discriminate based on job titles or hierarchical positions. They have the uncanny ability to impact every level and role within a company. This realization prompts a crucial question – should decisions be confined to the upper rants of the organizational hierarchy, or is there a more effective approach through decentralization?
To cultivate a culture of decentralized decision-making, we must reconsider the traditional concept of ‘levels’ within an organization. Instead of rigidly adhering to a hierarchical structure, decisions should be made where they are most needed. As someone rightly said, 1+1 is 11 and not 2. If we all acknowledge that we’re not all-knowing and prone to mistakes like anyone else, teams can become more stable and independent. It necessitates a shift towards open communication, where information flows seamlessly across all levels of the organization – unrestricted and inclusive. Organizations may need to channel the communication to avoid rumours and half-cooked information but must keep it open, unrestricted, and inclusive to foster effective osmotic communication and informed decision-making at all levels.