With a career spanning industries as diverse as building and construction, manufacturing, distribution, and mining, Greg brings over three decades of commercial experience to his work in CFO Advisory. Whilst his core focus is on improving the financial dimension of the businesses he works with, Greg also supports founders with advice on leadership, structure and team management.
For builders and tradies aiming to scale their operations, adding people to the business is crucial. However, without effective delegation, expansion is futile. Defining roles and tasks is straightforward, but entrusting significant responsibilities can be daunting, especially for those who have fought hard to build their business. The fear of risking it all by handing over control is real. Thus, adopting a layered approach to delegation, which allows for gradual elevation based on the complexity and risk associated with tasks, is essential for a smooth transition and maintaining business integrity.
Delegation should not be a one-size-fits-all strategy but rather a tailored approach that considers the task’s complexity and risk level. By starting with low-risk tasks and progressively moving to higher stakes, you build trust and competence within your team.
Start with tasks like conducting site safety inspections. The employee checks safety measures and reports findings, without making decisions. They go around the construction site, checking everything from scaffolding integrity to the placement of safety signs. However, their responsibility ends at reporting their findings to you or the relevant supervisor. They don’t have the authority to make decisions or implement changes based on their assessments. Instead, they provide you with valuable information to inform your decisions on improving safety measures.
As your team member gains experience and knowledge, they progress to the next level of delegation. Let’s say you’re working on a new project, and you need to decide on the materials to be used. At this level, your employee, perhaps a seasoned project manager, evaluates various material options based on factors like cost, durability, and availability. They then make recommendations to you, providing detailed analyses of each option. However, the final decision still rests with you. Your employee’s role is to offer expert advice and guidance, but they don’t have the authority to make the final call.
As your employee continues to develop their skills and understanding of the business, they may take on more significant responsibilities. For instance, they might be tasked with planning the phases of a construction project. In addition to outlining the sequence of tasks, they also assess the potential impact of each phase on the overall timeline, budget, and resources. They then present their comprehensive plan to you for approval. This level of delegation involves a deeper level of trust and responsibility, as your employee is not only planning but also considering the broader implications of their decisions.
At this level, your employee has demonstrated a high level of competence and reliability. For example, they might be responsible for hiring subcontractors for a project within a predefined budget and quality criteria. They have the authority to make decisions independently within the established parameters. This level of delegation empowers your employee to take ownership of their tasks while ensuring that they operate within clear boundaries set by you or the company. They understand the objectives and constraints and can make informed decisions accordingly.
Finally, there’s full delegation, where your employee takes on complete responsibility for a task or project. For instance, they might be entrusted with managing a construction site from start to finish. In this role, they have the authority to make decisions autonomously and handle all aspects of the project, including scheduling, resource allocation, and problem-solving. While they may still consult you for guidance or in exceptional circumstances, they have the confidence and competence to manage the project independently. This level of delegation reflects a high level of trust in your employee’s abilities and judgment.
For builders and tradies, mastering delegation is not just about offloading tasks; it’s about building a stronger, more capable team that can take your business to new heights. Delegation is a two-way street that builds trust between you and your employees. By delegating tasks, you’re demonstrating your trust in their abilities to get the job done. In turn, employees feel valued and respected, which strengthens their commitment to the team and the organization. Additionally, delegation encourages collaboration and teamwork as employees work together to achieve common goals.
When employees are given the autonomy to make decisions and solve problems independently, they’re more likely to come up with innovative solutions and creative ideas. Delegation fosters a culture of empowerment where employees feel encouraged to think outside the box. This can lead to process improvements, new approaches to challenges, and ultimately, business growth and success.
By understanding and applying the levels of delegation, communicating effectively, providing support, and celebrating successes, you can foster an environment where everyone thrives, including your business.
If you want to know more, get in touch with Greg Khan to book an initial consultation for free!
