Interesting article in Entrepreneur Magazine (no subscription required) discussing the level of control a CEO/entrepreneur really has in their business. The future is unknown and any leader must realize what they can and can not influence. The article states "[you] can't control external factors, but [you] should be in control of the general direction of the company, what it focuses on and who it hires early on."
Employees, no matter where they are or what they do, must and should contribute. Leaders must continually assess and understand the contribution individuals can make and assign employees' decision rights accordingly (the freedom to make decisions consistent with the demonstrated results they have obtained in the past). Leaders become more productive when they hire and develop employees who contribute, share their knowledge, speak up and challenge the status quo. Employees who constantly try to do these things grow their ability to make value-adding decisions. Sometimes this is misinterpreted as advocating complete decentralization of the organization. Rather, it is the value adding mix of both approaches. Centralizing or decentralizing consistent with what is best for the organization while also considering the ability of the employees to make value-adding decisions. The article includes this little gem:
today's leaders need enough confidence to act but enough humility to realize they don't know everything. They should let employees influence decisions and listen when they say the company is getting off course. "If you're going to make all the decisions, you might as well hire idiots," says Pfeffer. "They're cheaper."
I might qualify the last sentence - Idiots are only cheaper in the short run.
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