Latest / Executive Careers with Fexingo: VP, C-Suite, and Senior Leadership Career Strategy / How Senior Leaders Delegate Decision Rights
Transcript
- Lucas: So, Luna, I want to start with a question that I think gets to the heart of what a lot of senior leaders struggle with, even if they don't say it out loud. When you delegate a task to someone on your team, are you actually delegating the decision, or just the execution? Luna: Oh, that's a good one. Because I think there's a world of difference between saying 'handle this' and saying 'you own the outcome and you have the authority to make the calls.' Lucas: Exactly. And it's something that came up recently in a conversation I had with a former chief operating officer of a large tech firm. She told me about a decision that, on paper, should have ended up on her desk — a vendor contract worth several million dollars. But she realized that the person who had the most context, the most at stake, was a first-line manager who'd been leading the project for months. So she gave that manager the authority to sign the contract, with one condition: she wanted to know before the ink dried, but not to approve it. She just wanted the heads-up. Luna: And that's a really useful example, because it shows that delegation isn't just about tasks — it's about transferring decision rights. And that's a concept that's often misunderstood. Lucas: Right. And I think it's worth unpacking that, because a lot of leaders think they're delegating when they're really just assigning work. They say 'here's the project, bring me the plan, and I'll approve it.' But that's not delegation — that's task assignment with a checkpoint. True delegation means handing over the decision itself, not just the work. Luna: And that's the thing — a lot of leaders are afraid to do that because they feel like they're giving up control. But in my experience, the opposite is true. When you delegate decision rights smartly, you actually gain more control, because you're focusing your energy on the decisions that truly need your judgment. Lucas: And that's the real skill. Now, before we go deeper, I want to mention something. We keep this podcast ad-free, and that's a deliberate choice. If you find value in the conversations we have here, and you want to support that choice, you can do that at buy me a coffee dot com slash fexingo. It's a simple way to keep this going, and we appreciate it. Luna: Yeah, and we really do this for the love of it. So if you've ever gotten a useful idea from an episode, that link is a nice way to say thanks. Lucas: Exactly. Now, back to the decision authority ladder. I first came across this framework when I was researching how high-performing teams scale decision-making. It's a simple five-rung ladder that helps you define how much authority you're granting in any given situation. Luna: Okay, lay it out for us. What are the rungs? Lucas: So, rung one is 'Recommend.' That's where someone gathers the facts and brings you a recommendation, but you make the final call. Rung two is 'Agree.' That means they can make the decision, but they need your buy-in first. Rung three is 'Act, but inform.' They can go ahead and do it, but they have to tell you what they did and why. Rung four is 'Act, but inform after the fact.' They don't even need to check in first — you just want to know what happened. And rung five is 'Act with no notification.' Complete autonomy. Luna: I love that. It's like a spectrum, from 'you’re basically my analyst' to 'I trust you completely.' And the key is, you need to be explicit about which rung you're delegating at, because otherwise people guess — and that's where things get messy. Lucas: Messy is the right word. And I've seen it happen so many times. A leader says 'take care of this' and the person on the other end interprets that as rung five, when the leader actually meant rung two. Or the opposite — a leader says 'I want to be kept in the loop' and the employee hears 'I need to approve everything,' so they stop taking initiative. Luna: So how do you avoid that? Is it just about being more explicit? Lucas: Being explicit is a huge part of it. But I think there's also a diagnostic element. You need to map your decisions. Look at your calendar, look at your inbox, and ask yourself: 'Which of these decisions am I actually making? And which ones could someone else make, if they had the right context?' Luna: And I'd add: look at the decisions that are draining you. The ones you dread, the ones that feel like groundhog day. Those are often prime candidates for delegation. Lucas: That's a great filter. And it's one that a lot of executives use when they're working with a coach. They'll do a decision audit, where they list out every decision they made in a week, and then categorize them by how much they actually added value. The goal is to find the ones that other people could handle just as well, if not better. Luna: And what about the ones they still need to keep? I imagine there are some decisions that should never be delegated, like major strategic pivots or hiring your direct reports. Lucas: Absolutely. There's a distinction between decisions that are high-impact and irreversible, and those that are lower-impact and reversible. You want to keep the high-impact, irreversible ones on your plate, and delegate the ones that are reversible. That's a rule of thumb that comes from the world of product management — 'one-way doors' versus 'two-way doors.' Luna: One-way doors are decisions you can't easily reverse, like launching a new product line or firing someone. Two-way doors are like changing the color of a button — you can always change it back. Lucas: Exactly. And the insight is: most decisions are two-way doors, but leaders treat them like they're one-way. They hold on too tight, and that creates a bottleneck. I read a stat once — I think it was from a study by the Corporate Executive Board — that said the average manager spends about eight hours a week on decisions that could have been made by someone else. That's a full workday, every week. Luna: That's a significant amount of time. And if you're a senior leader, that's time you could be spending on strategy, on mentoring, on the things that actually move the needle. Lucas: Right. And that's where the decision authority ladder really shines. It gives you a language to have these conversations with your team. You can sit down with a direct report and say, 'For this project, I want you at rung three. Act, but inform me before you go public. That way I have a chance to course-correct if needed, but I'm not going to micromanage you.' Luna: And that kind of clarity is so empowering. It tells the person, 'I trust you, but here are the guardrails.' And that's a lot more motivating than being told, 'just do it and let me know how it goes.' Lucas: It is. And I think it's also important to tailor the rung to the person and the situation. For a new hire, you might start at rung one or two, and as they prove themselves, you move them up the ladder. It's a development tool as much as a delegation tool. Luna: That's a key point — delegation isn't just about offloading your work; it's about growing your people. And when you delegate real decision rights, you're giving them a chance to stretch and learn in a safe environment. Lucas: And the best leaders I've seen do this really intentionally. They'll identify a high-potential person, and they'll give them a decision that's just slightly above their current level, with the right support. It's like a flight simulator. They get to practice making decisions, and if it goes wrong, the consequences are contained. Luna: So, in practice, how would you advise someone to start implementing this? What's the first step? Lucas: I'd say start with a decision audit. For the next week, every time you make a decision, jot it down. Then at the end of the week, review the list and ask yourself: 'Which of these could I have delegated, and to whom? And at what rung?' You'll likely find a few that are easy wins — decisions that someone on your team is more than capable of handling, and that you're only making because it's a habit. Luna: And I'd add: don't just delegate the decision; delegate the context. Make sure the person has the information they need, the constraints, and the criteria for what good looks like. Otherwise, you're setting them up to fail. Lucas: That's a crucial point. Context is what makes delegation work. I've seen leaders delegate a decision but then not share the broader strategy or the political landscape, and the person ends up making a call that makes sense in isolation but is wrong in the bigger picture. So you need to give them the 'why' behind the decision, not just the 'what.' Luna: And I think there's also a cultural component. If you're in an organization where people are rewarded for deferring up, then delegation is going to be an uphill battle. You need to create an environment where it's safe to make decisions, and where mistakes are seen as learning opportunities. Lucas: That's true. And it starts at the top. If the CEO is someone who wants to be in the weeds, then the entire executive team is going to hoard decisions too. But if the leader models delegation, it sends a powerful signal. I remember reading about a CEO of a large consumer goods company who famously said, 'If I'm the one making all the decisions, then I've hired the wrong people.' Luna: That's a great line. And it really captures the mindset shift that's needed. Delegation isn't a sign of weakness; it's a sign of confidence in your team. Lucas: And it's also a sign of self-awareness. Knowing that you're not the right person to make every decision is a form of humility that actually makes you a stronger leader. Luna: So, for someone listening who's a senior leader, what's the one takeaway you'd want them to have from this episode? Lucas: I'd say: start with the decision authority ladder. Use it as a tool to have explicit conversations with your team about how much authority they have. You'll be surprised at how much friction it removes, and how much time it frees up for the decisions that really need your judgment. Luna: And I'd add: be intentional about moving people up the ladder. Delegation is a muscle, and it grows with use. The more you do it, the more you'll trust your team, and the more they'll grow into the leaders you need them to be. Lucas: That's a perfect note to end on. So, to our listeners, we'd love to know: what's one decision you've been holding onto that you could delegate this week? And at what rung would you delegate it? That's the kind of reflection that turns this from a concept into a practice.