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In the high-stakes world of business leadership, many leaders are not aware of a paradoxical truth which is: “True power lies not in hoarding authority, but in sharing it.” True leadership is not about micromanaging every decision but by empowering others to take necessary action for the advancement of the unit, department, region or organization.

Leadership is about recognizing that your role as a leader is to multiply your impact through others. The most effective leaders understand that their success is measured not by what they accomplish alone, but by what they enable their teams to achieve.

Leadership, by definition, comes with a mantle of power. However, the most effective leaders understand that this power isn’t meant to be clutched tightly but rather distributed judiciously among team members. It’s about creating a web of empowered individuals who can collectively drive the unit, department, region or organization forward. Leadership is indeed a position of power, but it is how you use that power that defines your legacy.

The best leaders learn to share power strategically with their associates. These are leaders who give room to their team members to exercise certain authority as assigned by them. It is not about abdication of responsibility, but rather about intelligent delegation that develops capability while maintaining accountability.
The leadership style of Satya Nadella at Microsoft is an example of leaders who empower their team members. When he took over as CEO in 2014, he didn’t centralize power. Instead, he empowered division heads to make critical decisions, fostering a culture of innovation and agility.

This approach led to the successful development of products like Microsoft Teams and the growth of Azure, Microsoft’s cloud computing service. By sharing power, Nadella not only revitalized Microsoft but also cultivated a new generation of leaders within the company. Nadella empowered his leadership team to make bold decisions in their respective domains. This empowerment strategy turned the company into one of the world’s most valuable enterprises.

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Empowerment isn’t just about delegating tasks; it’s about entrusting your team members with real responsibility and authority. A leader must have the courage to assign meaningful responsibilities and then step back, trusting the team to deliver. Reed Hastings of Netflix implemented a culture of “freedom and responsibility,” giving employees unprecedented autonomy in decision-making. This trust-based approach led to innovations like the company’s successful transition to streaming and its venture into original content production. By trusting his team, Hastings not only drove Netflix’s success but also created an environment where creativity and initiative thrived.

Empowering your team members isn’t just beneficial for them; it creates a positive ripple effect throughout the entire organization. When individuals are entrusted with responsibility, their decision-making skills improve, their confidence grows, and their commitment to the organization deepens. Alan Mulally turned around Ford Motor Company during the 2008 financial crisis by empowering his executive team to make crucial decisions. This fostered a culture of transparency and collaboration. This approach not only helped Ford avoid bankruptcy (unlike its competitors) but also improved the company’s overall performance and employee morale.

Consider how Indra Nooyi transformed PepsiCo during her tenure as CEO. Rather than trying to manage every aspect of the global business herself, she systematically empowered regional leaders and division heads to adapt strategies to their specific markets while maintaining alignment with the company’s overall vision. This approach allowed her to focus on long-term strategic initiatives like the company’s move toward healthier products and sustainable practices, while simultaneously developing a pipeline of capable leaders who could eventually take on greater responsibilities.
There is a strategic advantage when members of the team are empowered to take decisions. When you empower your team, you free yourself to focus on more strategic, big-picture initiatives. The leader is no longer bogged down in day-to-day operations. This allows him to steer the organization towards long-term success.

Jeff Bezos’ leadership at Amazon exemplifies this approach. With the empowering of his team to run various divisions with significant autonomy, Bezos was able to focus on long-term strategy and innovation. This led to the development of game-changing initiatives like Amazon Web Services and Alexa, which have redefined the entire industry.

The leadership philosophy of former GE CEO Jack Welch is another prime example of empowering team members to take decisions. His emphasis on empowerment and leadership development not only drove GE’s success during his tenure but also produced a generation of CEOs who went on to lead other major corporations.

In conclusion, the true measure of a leader isn’t in the power they wield, but in the power they share. By empowering your team members, you’re not diminishing your own authority; you’re multiplying it. You’re creating a network of capable, confident individuals who can drive your organization to greater heights. Empowering your team members helps you to create other leaders and multiply talents. You also unlock the potentials of others. The question every leader must ask is not “How can I do this better?” but rather “How can I empower others to exceed what I could accomplish alone?”

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