The Leader As Choke Point

Having an effective organizational design is a very important part of scaling up your business. Knowing who is accountable for what is paramount in reducing ambiguity and conflict and in achieving that exciting vision of the future that you have.

A traditional hierarchical organizational design works best for most businesses. I’m not a big fan of matrix style organizational designs because they introduce too much ambiguity regarding who’s accountable for what. You can’t hold a team accountable, only individuals, and simpler is almost always better.

The least effective organizational design is the “hub and spokes” model. Imagine a bicycle wheel. The leader is the hub of the wheel, and the spokes run out to their subordinates on the rim.

In this model all important decisions need to be made by the leader at the center of this organizational design, so they become a “choke point” for efficiency and growth. In addition, subordinates never develop the confidence necessary to make important business decisions on their own.

Of course, the majority owner of a business is accountable for the financial performance of that business, so they need to stay apprised of all the relevant measures of success, but any tendency to “micromanage” inevitably leads to inefficiency and lost opportunity.

Why do some leaders operate this way? Because of unrealistic fears about “losing control.” Essentially these leaders have perfectionistic tendencies that interfere with their ability to delegate authority and enjoy the growth advantages that come with effective delegation.

Are you a “choke point” in your business? If so, get some help in resetting your standards and delegating wisely. You’ll be glad you did.

Don’t be a stranger. (770) 993-1129. tdockery@TheResolveFirm.com