To avoid becoming a bottleneck, create a decision framework with tiered spending authority (e.g., $50 for any employee, $500 for managers). This pushes problem-solving down to the people with the most context, freeing up the CEO and speeding up operations.
The "Decision Ladder" is a framework for radical empowerment. By giving every employee permission to spend a small amount (e.g., $50) to solve any problem—with increasing authority for managers and directors—you eliminate approval delays and foster a culture of ownership.
Companies mistakenly bundle management with authority, forcing top performers onto a management track to gain influence. Separate them. Define management's role as coordination and context-sharing, allowing senior individual contributors to drive decisions without managing people.
In a highly collaborative and fast-paced environment, assign explicit ownership for every feature, no matter how small. The goal isn't to assign blame for failures but to empower individuals with the agency to make decisions, build consensus, and see their work through to completion.
Effective delegation of decision-making authority is impossible without first ensuring leaders are deeply aligned on organizational objectives. When individuals are empowered to make choices but pull in different directions, the result is a quagmire, not progress. Alignment must precede autonomy.
To truly disconnect, empower your team with financial autonomy for problem-solving. Define a clear budget (e.g., '$400 per problem') within which they can act without your approval. This forces resourcefulness and prevents you from becoming a micromanagerial bottleneck.
To empower your team, enforce the '1-3-1 rule' for problem-solving. Before anyone can escalate an issue to you, they must define the one problem, research three potential solutions, and present their single best recommendation. This forces critical thinking and shifts the team from problem-spotters to problem-solvers.
Create a clear hierarchy of spending authority to eliminate decision bottlenecks. For example, any employee can spend up to $50 to solve a customer problem, managers up to $500, and directors up to $5,000, no questions asked. This empowers the team to make swift decisions without waiting for approval.
As companies grow from 30 to 200 people, they naturally become slower. A CEO's critical role is to rebuild the company's operating model, deliberately balancing bottom-up culture with top-down strategic planning to regain speed and ensure everyone is aligned.
Many leaders, particularly in technical fields, mistakenly believe their role is to provide all the answers. This approach disempowers teams and creates a bottleneck. Shifting from advising to coaching unlocks a team's problem-solving potential and allows leaders to scale their impact.
Don't wait for a large budget to learn delegation. Start with inexpensive tools like ChatGPT to practice offloading tasks and articulating needs. This 'ladder of leverage' allows you to build the core skill of delegating, making you far more effective when you eventually hire human assistants and chiefs of staff.