Software these days moves quickly and needs to adapt even faster, and older models of top-down decision-making just don’t work anymore. Last summer, I wrote about decision making, but I didn’t talk enough about when leaders should not make decisions, and delegate them instead.
Leaders today are not just expected to make decisions but to empower their teams to make them. This is especially important when it comes to decisions related to complex or localized problems, where those on the ground often have the clearest view.
Drucker to the Rescue
One of the most famous proponents of this idea was Peter Drucker, who argued that decision-making should be placed in the hands of the people closest to the issue. Drucker's philosophy was a direct challenge to the command-and-control leadership that dominated corporate structures for much of the 20th century (Jack Welch is not my idol). Drucker’s ideas highly applicable today given the complexity, ambiguity, and rapid change required for modern software delivery.
The Toyota Production System (TPS) also emphasizes empowering workers closest to the problem to make decisions on how to solve the problem.
Leadership Fail
The primary argument against top-down decision-making is that it's too slow and too disconnected from the realities at the ground level. When a decision has to move up several layers of hierarchy before being addressed, it wastes time - but even worse than the time delay is the fact that key details get lost in translation. Leaders sitting at the top of the org often have a high-level view, but lack the nuances and insights that someone at the front line possesses.
Stanley McChrystal highlights in Team of Teams states that waiting for instructions from above can mean the difference between success and failure. McChrystal learned this in Iraq, where the fast, decentralized decision-making style of insurgents was outpacing the traditional, hierarchical military command structure. His solution was to build a "team of teams" approach where decision-making was pushed down to those with the most direct knowledge of the problem.
In any fast-paced environment, the need for agility is critical. Relying on a central authority to make every decision creates bottlenecks that slow progress and reduce the organization’s ability to respond in real time.
Decentralized Decisions
The benefits of decentralized decision-making are clear, but a lot of leaders struggle with letting go of control. One of the primary reasons is trust—or more accurately, the lack of it. To allow people closest to the problem to make decisions, leaders need to trust their teams fully. This trust is not just built overnight; it requires deliberate effort.
Here are three critical steps to build a culture where teams feel empowered to make decisions:
Psychological Safety: Yes - here is that term again. If team members are afraid of making mistakes or being blamed when things go wrong, they’ll be hesitant to step up and take ownership of decisions. Leaders must create an environment where it's okay to experiment, fail, and learn. By modeling vulnerability and admitting their own mistakes, leaders can demonstrate that failure is a natural part of growth.
Boundaries and Expectations: Decentralized decision-making doesn’t mean a free-for-all. It’s essential to establish clear guidelines and boundaries for where decision-making authority lies. Teams need to understand the parameters within which they can operate autonomously and where they may need additional input. Leaders also need to set clear expectations around accountability to ensure alignment with broader organizational goals.
Resources and Information: Empowering teams means giving them the tools, data, and context they need to make informed decisions. Leaders can’t just delegate responsibility without providing the right support. Whether it's training, access to key information, or a forum for feedback, teams need to be equipped to make decisions with confidence.
Decentralized Decisions
In a decentralized decision-making environment, the leader’s role shifts from one of control to one of support and guidance. The leader is no longer the bottleneck for decision-making but rather the person ensuring that the team has the resources, support, and clarity they need to succeed. This can feel uncomfortable at first, but the benefits of an empowered, agile team far outweigh the discomfort of letting go.
Leaders in this model spend more time coaching than directing, more time listening than telling, and more time creating an environment where innovation can flourish rather than dictating how things should be done. It's a shift in mindset from “owning the problem” to “enabling the solution.” It’s harder than it sounds, and unfortunately, many leaders never get here.
Next Steps
Decentralizing decision-making isn’t about relinquishing control entirely—it's about placing trust in the people who are best positioned to solve problems quickly and effectively. Leaders who can figure this out, and provide the right tools and resources will see their teams excel and grow - even in the most complex software delivery environments.
-A