Tuesday, January 29, 2013

Decision Tree Management: How to Build Structure Around Delegation

I recently noted the book Fierce Conversations as a very useful read.

One gem is the book is the decision tree model of delegation. Nothing is more damaging to moral than starving employees from autonomy and accountability. The challenge is how to draw clear boundaries around the areas where the team can act autonomously versus areas where management approval is required.  In banking, credit limits serve as boundaries, junior bankers can extend $5m loans, senior officers $10m, and corporate approvals for >$10m.

The Fierce Model Decision Tree Follows:
  • Leaf Decisions - make the decision, act on it. do not need to report on action you took.
  • Branch Decisions - make the decision, act on it, report the action you took on a calendar basis.
  • Trunk Decisions - make the decision, report the decision BEFORE you take action
  • Root Decisions - make the decision jointly, with input from many people.

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