Leaders typically assume employees know what decisions they are empowered to make and what decisions need to be approved. However, if that has not been documented and communicated, it is unlikely to be true. When decision-making authority is not clear, some employees will “go rogue” and make decisions without asking. However, most employees simply become reluctant to make decisions at all. This not only creates anxiety within employees, but it directly decreases performance and results.
Many of our clients at Anavo have experienced both ends of this situation and we have seen the impact. A format we use to create clear decision-making authority is called the Decision-Making Matrix. We recommend that this is created for each level and function in the company, from supervisors and up.
Here is an example of the Decision-Making Matrix for a VP of Marketing. A similar structure should be created for Directors, Managers, Supervisors, and other relevant positions:
We see the greatest success when decision-making authority is clearly communicated, followed by training employees on how to make good decisions. This increases their ability to make the best decisions while also building their confidence.
If you want employees to perform, encourage and equip them to perform and watch the results happen. You can find additional articles on our blog page or reach out to us at Anavo Growth Partners to learn more.
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