Leaders Should Focus on High-Risk Decisions

November 8, 2017

Sometimes the smartest decision a leader can make is to delegate that decision to someone else, says a recent Kellogg Insight.

But before choosing whether a decision can be delegated, the leader must first assess the riskiness of that decision. Ideally, the article says, the CEO and board of directors should save their focus for only the highest-risk decisions, such as making an acquisition that doubles the company’s size. Mid- and lower-risk decisions—staffing and product launches, for example—should be handled further down the corporate ladder.

Whether senior leadership refuses to let go or those below are unwilling to be held accountable, letting decisions escalate too high up the chain of command can cause a number of problems, according to the Kellogg Insight.

For more information, see the full Kellogg Insight: “When Should Leaders Own a Decision and When Should They Delegate?