Delegate Work, Not Authority

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1. Feature: Delegate Work, Not Authority (4 min)

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Delegation is one of the first skills a growing business owner must learn and one of the easiest to get wrong. Delegation problems usually do not come from delegating too little. They come from delegating imprecisely.​

At its best, delegation frees you to focus on strategy, customers, and growth. At its worst, it quietly transfers decision-making power you never intended to give away. The difference is not trust or experience, it is clarity.​

Many owners believe they are delegating tasks when, in reality, they are delegating authority. The confusion usually shows up later in the form of unexpected commitments, strained relationships, or obligations the business never meant to assume. The fix is straightforward.​

Understand the difference between work and authority

Delegating work means asking someone to perform a defined task or carry out a specific function. Delegating authority means giving someone the power to bind the business, make final decisions, or commit resources. Those are not the same thing, and courts often treat them very differently when disputes arise over who had power to bind the business.​

For example, asking an employee to collect vendor quotes is delegation of work. Allowing that employee to select the vendor and sign the agreement is delegation of authority. Asking a consultant to negotiate terms is still delegation of work. Letting that consultant agree to those terms on the company’s behalf crosses the line.​

Problems arise when the line is not clearly drawn and communicated

Clear communication is not just a management best practice. It is a risk-management tool. Courts, counterparties, and regulators look at what a reasonable third party would believe based on words and conduct. If your actions suggest someone had authority, disclaimers made later carry little weight.​

That is why vague instructions create risk. Phrases like “handle this,” “take care of it,” or “work it out” sound efficient, but they are open-ended. They invite assumptions and make it harder to unwind decisions after the fact without damaging trust.​

Here is how a clearer instruction might look, without being pushy or controlling:

Please gather at least three proposals from qualified vendors for the new [service or equipment].
You can talk with vendors, ask follow-up questions, and negotiate draft terms.
Please do not sign or verbally agree to any pricing or contract terms. I will make the final decision and sign any agreement after we review your recommendation together.

Same work, but with sharper boundaries.​

Clarity works best when it is specific and repetitive

When delegating work, define three things explicitly:

1. What the person is responsible for doing.

2. What decisions they may make on their own.

3. What decisions require your approval.

This does not need to be complicated or formal. It just needs to be unmistakable.​

Written communication helps. An email that says, “Please gather proposals and bring me your recommendation before any commitments are made,” is far safer than a verbal instruction that leaves room for interpretation. The goal is not to micromanage. The goal is to eliminate ambiguity.​

For customer-facing work, that might sound like this:

You are authorized to offer discounts up to 10% to close standard deals with this customer.
If they ask for more than that, changes to payment terms, or special guarantees, pause and loop me in before you agree to anything.

You are giving room to operate, and also a clear point where they must stop and check.​

These principles apply to partners, employees, and consultants

With partners or other LLC members, the risk is often higher because authority may already exist by default under state law or the operating agreement. One partner’s casual assurance to a vendor can bind the company even if the other partners disagree. Clear internal rules about who can approve what, and when consent is required, are essential — and they should be followed in practice, not just written down.​

Employees present a different challenge. Over time, capable employees are often given more discretion. That is natural and healthy. The danger comes when responsibility expands faster than authority is consciously adjusted. A long-tenured employee who regularly interacts with customers or vendors may be assumed to have authority simply because no one has ever corrected that assumption.​

Consultants are frequently misunderstood. Many business owners assume that because someone is an independent contractor, their actions cannot bind the company. That is not always true. If a consultant is presented as acting on behalf of the business, and third parties reasonably rely on that appearance, the company may still be on the hook. Titles, email addresses, and introductions all matter. It is also important to spell out in your consulting contract that the consultant is not your agent and should avoid acting as one.​

A brief instruction can reinforce that boundary:

Your role is to advise us and, when asked, to negotiate draft terms.
You are not authorized to sign contracts or make binding commitments on behalf of the company.
If a vendor asks for a final answer or signature, let them know you will bring their proposal to me for approval.

Consistency matters as much as clarity

If you say someone does not have authority, but then routinely allow them to make binding decisions without correction, your words lose force. Authority is inferred from behavior. If you want limits to be respected externally, they must be enforced internally.​

Good delegation also includes a feedback loop. Require check-ins before final decisions are made. Encourage questions when someone is unsure. Make it easy for people to pause rather than guess. Most costly mistakes happen when someone feels pressure to act and lacks clear guidance.​

Delegating work without delegating authority is not about control for its own sake. It is about protecting the business while enabling others to contribute effectively. People do their best work when expectations are clear and boundaries are known.

As your business grows, delegation will increase. That is a sign of progress. Just make sure what you are handing off is responsibility, not power you never meant to give away.

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