How do you delegate authority while maintaining coherence? That was the question at the core of Traction Heroes episode 43. It’s especially tricky in large organizations.
Leaders can go about it one of two ways: top-down and bottom-up. The first is tricky, since there’s only so much leaders can do. The larger the org, the more likely they’ll lose touch with conditions on the ground. Bottom-up is preferable, but that’s where you risk incoherence. If everyone can do whatever they want, the org can drift.
That’s where principles help. A strong set can help organizations remain coherent while delegating decision-making. Leadership maintains the culture that allows the organization to accomplish its mission over time while pushing decisions to the levels closest to the work. It’s a principle I learned from Catholic social teaching called subsidiarity.
The father-and-son team of Charles and Chase Koch published a book earlier this year called Becoming a Principle-Driven Leader that explains their approach, which exemplifies subsidiarity. The book also offers 41 principles that have helped Koch Industries maintain coherence at scale. I read from one of them, appropriately called BOTTOM-UP VS. TOP-DOWN. Here’s a portion:
A top-down approach presumes those in control know what’s best for everyone else. Those at the top typically seek power, rely on one-size-fits-all approaches, and use detailed rules and coercion that stifle others. No matter how well-intentioned, a top-down approach only benefits those at the top.
A bottom-up approach respects the inherent worth of each person and unleashes creativity, initiative, and talent. When behavior is governed by this principle, the outcome exceeds what anyone could have planned or predicted. Everyone benefits when behavior is mostly governed by general principles rather than detailed rules, freeing individuals to use their gifts and knowledge to tackle problems and pursue opportunities.
The Kochs clearly favor bottom-up, as do I.
If I sounded a little defensive, it’s because Charles Koch is cast as something like a boogeyman in left-leaning social circles. But I’ve found much to agree with his and Chase’s approach, even if (as I noted in my reading notes) I had some qualms with the book.
Regardless of what you think of the Koch’s politics, it behooves you to approach this episode — and their book — with an open mind. There are interesting and practical ideas there.