The 70% Rule
So when do you delegate a task? This central question stops many CEOs from moving tasks into their team. They wait until someone else is able to complete the tasks as well as they can and thus doom themselves to owning that task forever.
Smart CEOs, on the other hand, use the “70% Rule.” Put simply, if the person the CEO would like to do the task is able to do the task at least 70% as well as they can – they should delegate it. Is it frustrating that the task won’t be done with the same level of perfection or perceived perfection that they could achieve? Sure! Let Go of Perfection. It’s easier said than done? Yes, certainly. But there is no place for perfection when it comes to delegation. The upside is the CEOs don’t need to spend any time on the task – zero! The “return on time” they don’t spend on that task is infinite, plus they gain that same time to invest in a higher impact project.
Part of the delegation process involves documenting what you, as CEO, want to accomplish and then transferring the knowledge needed for your team members to get it done. Then it's time for perhaps the most difficult part of delegation — letting go and trusting that your team members will take the ball and run with it. This requires an understanding that they may do it in a way completely different from how you would do it. In order to let go of perfection, you need to decide what’s more important to you: having the work completed to “perfection” (the way you would do it), or having it completed successfully in a different way. You may even be surprised to find that when you give your team members a little leeway, they discover new — and better — ways to do things.
This 70% performance standard allows the CEO to aggressively move tasks to team members and have them perform the tasks at an acceptable level. Clearly there are some tasks that require a 100% performance level. The CEO will choose not to delegate these tasks. They could be transferred but with extensive support and training. In addition, one on one oversight may be required also.
One important point is that if you delegate a task fully, you shouldn’t try to coach up the receiver to get back that 30% difference. When it comes to effective delegation, not only does communication need to be clear, concise and consistent, but you also need to make sure each team member has access to the same information. Trust is one of the most important factors when it comes to delegation, and it goes both ways. You need to trust that your team members will complete the work they are responsible for, and your team members need to trust that you are giving them all of the information they need to do the work. You will be available to back them up when necessary.
Effective delegation can be the answer for the time-challenged small business owner who is struggling to find the time to grow his or her business. And when you take measures to set yourself up for an effective delegation process, you're not only giving yourself time to focus on your most vital business activities, but you're alleviating some of the pressure of always doing everything yourself. No Monday morning quarterbacking either. If you do, you will suck the energy, passion and ownership right out of the new task owner and they will simply defer to the leader – and you will never really lose that task for yourself. Your goal is to delegate, recapture time for higher level tasks, develop the employee, and achieve success.
This guest post is courtesy of Jim Schleckser, CEO, Inc. CEO Project.