Why Decentralization?

In centralization, a limited amount of authority is delegated. In decentralization, a significant amount of authority is delegated to lower levels. Each form has its advantages and disadvantages and is affected by a number of factors, such as size of organization and the amount of geographic dispersion. If the organization is very large, diversified or geographically dispersed, the limitations of expertise and personal resources will generally lead to decentralization of authority to the heads of these different businesses. Innovative enterprises, where speed and adaptability to change are characteristics of the business, tend towards decentralization.

Delegation Defined

Delegation is the process that makes management possible, because management is the process of getting results accomplished through others. A manager should provide team members with the information they require to do a good job, communicate with them frequently, and giving them clear guidelines on the results that are expected. Further, managers must also take the "relationship responsibility" for those with whom they work.

Delegation is the preferred approach to managing and coaching people who have high skill and high will to complete the specific task at hand.

Why Delegate?

At a certain point, there are just too many facets to running a successful business to continue doing it alone. In an increasingly complex business environment, with all the trends affecting business today, such as globalization, the information technology explosion, strategic alliances, increased mergers and acquisitions, heightened competition, and higher expectations of nearly every customer, it just isn't possible to still be that one person in control of everything. Bringing in others to manage is an absolute necessity for survival now.

Owners and managers should concentrate on the activities they do that bring the most value to their organization. You must perform only "essential activities" that give the company its competitive advantage over other companies in the industry. Learn to do less and manage more.

The delegation task is in finding the right persons and giving them the right work. The sheer volume of management responsibilities necessitates delegation. Always drop unnecessary work altogether; concentrate only on the tasks that nobody else can do. Necessary tasks that can be done by others should be delegated.

Often the need to delegate is sparked by rapid business expansion, particularly as a result of acquisition.

How To Delegate?

Resist the temptation to keep tasks to yourself as a means of control or a demonstration of power. Be a leader rather than a mentor.

The first step is to recognize when it is time to delegate. Then determine what to delegate, how, and to whom.

To help you define and allot tasks, including your own, ask yourself three of Peter Drucker's questions:

• What am I doing that does not need to be done at all?

• What am I doing that can be done by somebody else?

• What am I doing that only I can do?... More

Delegating responsibilities to those you trust would free you to focus on what you are best at. Promoting from within is a valuable tool for retaining and motivating your people. However, if current employees don't have the skills your business needs, don't hesitate to hire someone who does. It often makes sense to search for someone who can immediately add value to your management team as well as transfer some of his or her skills to others in your organization.

The Secret of Successful Delegation

Explain the task, tell your people what should be done, but don't tell them how. "This is the secret of successful delegation. When you tell somebody exactly how you want a task carried out, it removes any creativity. It becomes completely boring, there is no challenge and they do not have to develop in any capacity whatsoever," says Richard Denny... More

Using the Skill/Will Matrix

If you assigned a task to someone and the job does not quite get done well enough, one of the most likely reasons is that: