What is the prerequisite for decentralized authority to be successful across all levels?

Decentralized authority relies heavily on the judgment of individuals at all levels of an organization. This means that when authority is spread out, it's essential for those making decisions to possess the ability to analyze situations effectively, evaluate risks, and consider the implications of their actions. Good judgment enables team members to exercise their authority appropriately, respond more quickly to dynamic environments, and make decisions that align with the overall mission and goals of the organization.

When authority is decentralized, it empowers individuals closer to the action—who may have better situational awareness—to take initiative and make decisions without always waiting for higher approval. This requires a high level of trust in their judgment, as they must be able to interpret policies, understand context, and prioritize objectives correctly.

Other factors, such as effective communication, strong organizational structure, and defined leadership styles, certainly contribute to the success of decentralized authority, but they are not standalone prerequisites. Effective communication ensures that information flows smoothly, a strong organizational structure can support decision-making processes, and defined leadership styles can guide behavior. However, without sound judgment, the effectiveness of these elements is diminished in practice.