Earlier this week, I had one of those experience I love so much in my work. Following a number of training sessions, I sat down with the management team of a family business, to discuss how this business can grow beyond the time availability of its present managing director. Such discussions always evolve two main points – on one hand a business leader who is feeling overwhelmed and tired at being involved in every decision and on the other hand a management team who feels helpless at doing things without involving the business leader in everything.

I have obviously sat down for several of such discussions and it is interesting to see how difficult it is at first to deconstruct a common misconception that a CEO’s or Managing Director’s role is that they are the ultimate decision-maker and that he/she should ultimately get to take all decisions. Luckily many times, by the end of such discussions many realise that the leader’s role is much more about shaping rather than making decisions. Let me explain further.

There’s a fundamental reason for this subtle difference. Businesses face countless decisions daily, and it would be impossible for a CEO or Managing Director to be involved in each one. Attempting to do so would slow down the entire operation and could even bring it to a standstill. As a result, rather than making decisions directly, the proper role of a business leader is to enable others to make decisions the CEO or Managing Director can support. Of course, there are times when the business leader must be the ultimate decision-maker, but the ultimate aim should be clear – The fewer decisions the CEO or Managing Director has to make, the better.

Business leaders have several tools at their disposal to shape decisions in their organisations. They can shape decisions by aligning everyone around a shared purpose, articulating priorities and setting goals. Decisions are also shaped by developing a clear strategy, adopting an organisation structure that allows for the proper distribution of responsibilities and fostering a strong culture. A clear performance measurement and reward system can also help. This does not mean that business leaders should step away from decision-making entirely, but rather than they must choose where and how they personally engage in decision-making.

The decision-making landscape in any business organisation is vast and complex. A useful map is to think of categories of decisions on one axis (e.g., strategy, structure, culture, people, products, investments, etc.) and the organisational level at which decisions need to be made on the other axis (e.g., corporate, business unit, the overall who business etc..). CEOs or Managing Directors must choose how to personally engage to shape decisions across this entire landscape. This involves, at each intersection of category and level, determining the extent to which they are involved in designing the decision-making process, choosing when to participate directly, monitoring the work, and creating clarity around when and by whom a decision will be made.

So my advice is that business leaders should focus evermore on the following elements:-

1. Designing the Process: Business Leaders should focus on thoughtfully designing any needed decision-making process. This involves setting parameters such as who is to be involved, what questions to answer, what kinds of information to gather, what guardrails to keep in mind, how many meetings to have, the structure of the discussions, and what gets decided when and by whom. The CEO may play a major role in designing some decision-making processes and a lighter role in others.
2. Participating in the Process: Business Leaders must then choose how much they want to participate at various stages of the decision-making process. They may be active at every step, check in from time to time, or get engaged at a specific point, such as the beginning, middle, or end. A Business leader’s choice about when and how to personally step into decision-making situations often reflects their desire to make their teams active participants in the decision, as a way to increase buy-in. If you the best CEOs or Managing Directors in these settings, what’s striking is how many of their actions are aimed at guiding others toward a decision, instead of overtly influencing the decision in a way that may feel heavy-handed. They provide this guidance by challenging the process, raising the bar, asking tough questions, and demanding better answers. Even though business leaders are involved, they should be careful to leave actual decision-making to their colleagues.
3. Monitoring the Work: Business Leaders must also choose how much they want to be personally engaged in monitoring the work. Providing feedback as any decision-making process unfolds is a vital element of any CEO’s role. Business leaders often describe themselves as monitors who must check to ensure things are on track and that the organisation is executing as planned. By doing so CEO or Manging Directors are able set standards, encourage alignment and enable course correction. In some cases, the CEO may meet regularly with the team to monitor progress. In others, they may only check in occasionally to ensure things are on track. A key choice while monitoring decision-making processes is the altitude, or level of granularity, at which the business leaders wants to engage. CEOs can choose to engage at a high level or dig deeply into the details.

In conclusion, the role of a CEO or Managing Director is not about making every decision, but rather about creating an environment in which decisions are made effectively. By shaping decisions rather than making them, business leaders empower their teams, foster agility and drive the organisation toward success. The CEO or Managing Director is more of a conductor, orchestrating the many parts to produce harmonious results, than a dictator issuing commands. It’s a shift in perspective that is required when business leaders assume their pinnacle position.