"Above the Waterline" Thinking and Distributing Authority to the Edges of an Organization
My musing on the origins and how to implement above-the-waterline thinking. Which I’ve used at the last three organizations I’ve been an executive at.
In recent years, there has been a growing trend towards "above the waterline" thinking and distributing authority to the edges of organizations. This approach involves empowering employees and allowing them to make decisions that directly impact the company's success rather than relying solely on top-down management structures. By doing so, companies can foster a culture of innovation, increase employee engagement and satisfaction, and ultimately drive better business outcomes.
What is "Above the Waterline" Thinking?
The term "above the waterline" comes from the maritime industry and refers to the point at which a ship's hull becomes visible above the waterline. In a business context, "above the waterline" thinking means that employees are empowered to make decisions that are visible and have a direct impact on the success of the organization. This is in contrast to "below the waterline" thinking, where employees can only make decisions that are hidden from view and have a limited impact on the company's success.
Why is Distributing Authority to the Edges Important?
When authority is distributed to the edges of an organization, employees are free to make decisions that are relevant to their role and directly impact the company's success. This leads to several benefits, including:
Increased Employee Engagement and Satisfaction: When employees feel empowered and valued, they are more likely to be engaged in their work and have higher job satisfaction. This, in turn, leads to increased motivation, higher levels of productivity, and a lower turnover rate.
Innovation: When employees are free to experiment and try new things, they are more likely to devise innovative solutions to problems. This leads to a culture of innovation, where new ideas and approaches are encouraged and embraced.
Improved Decision-Making: When employees are given the authority to make decisions, they are more likely to take ownership of their work and make decisions that are in the company's best interest. This leads to more informed and effective decision making, ultimately, better business outcomes.
Better Alignment with Company Goals: When employees are empowered to make decisions, they are more likely to align their work with the company's overall goals. This leads to a more cohesive and focused organization, where everyone is working towards a common goal.
How to Implement "Above the Waterline" Thinking and Distributed Authority
Implementing "above the waterline" thinking and distributed authority requires a cultural shift within the organization. Here are a few steps that can help:
Communicate the vision: It's important for leaders to clearly communicate the vision and goals of the company and how distributed authority fits into that vision. This helps to ensure that everyone is on the same page and understands why this approach is being taken.
Provide training and support: Employees need to be equipped with the skills and knowledge they need to make effective decisions. This includes training on decision-making processes, as well as access to the information and resources they need to make informed decisions.
Foster a culture of trust: Employees need to feel trusted by their leaders to feel comfortable making decisions. This requires leaders to be transparent and open in their communication and to provide regular feedback and support to employees.
Measure and evaluate: It's important to regularly measure and evaluate the impact of distributed authority on the success of the company. This helps to identify areas for improvement and ensure that the approach has the desired effect.
In conclusion, "above the waterline," thinking and distributing authority to the edges creates an environment where team mates have outsized returns on their work. By creating an organization of radical and free thinkers, you can be opportunistic while staying intentional.
