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Management

3 delegation mistakes that cost thousands

By Marek Nowak, Financial Analyst·July 15, 2024·6 min read

Delegation is not about offloading responsibility onto others. At Profit Doctrine, we see how a lack of specifics in instructions drains a company's budget faster than poor sales.

Mistake one: Lack of a specified end result

Many entrepreneurs say: 'take care of this report'. The employee guesses what should be inside, and as a result, after 5 hours of work, they deliver something that requires corrections. Our calculations show that fixing errors after a misunderstood task costs the company on average 42% more time than doing the work correctly the first time. This is a pure waste of capital that can be avoided with a simple scheme.

Instead of generalities, define exactly what must hit your desk. Should it be an Excel file with specific columns, or a note on one A4 page? At Profit Doctrine, we introduced the '3 questions' rule: what am I getting, when am I getting it, and what tools are needed? If the employee cannot answer these questions after a short conversation, the task is not ready to be handed off. It's simple operational math.

Mistake one: Lack of a specified end result

Mistake two: Checking progress too late

Waiting for a finished project by the deadline is a risky approach. If you hand off a task for 14 days, and after 13 days you notice an error in the assumptions, you will lose the entire operational cycle. Our practice working with clients in the Silesian region taught us that it is worth introducing a so-called check-point at 30% of the implementation time. This usually gives us about 2 hours to correct the course without pushing back the deadline.

In one of the companies we worked with in 2023, we reduced project correction time by 27% just by introducing a short status check on the fourth day of work. This is not micromanagement. It is ensuring that every work-hour is actually productive. We measure, check, and improve – that's our foundation.

Waiting until the deadline is a gamble your company should not afford to take.

Mistake three: Lack of access to resources at the start

Are you getting a list of questions from the team halfway through the work? That's a signal you didn't hand off a complete set of data at the start. If your team is looking for invoices, system passwords, or customer data for 2 hours, you are wasting 250-400 PLN on simple downtime. At Profit Doctrine, we prepared simple brief templates for our clients that contain a list of attachments necessary to start work.

Preparing a starter kit takes 15 minutes, but saves a full day of work on subsequent assignments. If you respect your people's time, they will reward you with greater precision. No more wasting capital on clarifications that should have been clear on the day the email with the task was sent. Make sure everyone has the tools they need at hand.

Mistake three: Lack of access to resources at the start

Summary: How to get back on track?

Implement the above changes immediately. You don't have to rebuild your entire management system in one weekend. Choose one process, e.g., invoicing or sales reporting, and apply the rule of a clear brief and checking at 30% of the time. You will see the difference in the quality of the final product after just 14 days. We only count real profits, and your employees' time is your most expensive resource.

If you still feel that your team works hard but the results aren't translating into financial results, it might be time to review your delegation procedures. Sometimes a fresh look from the outside is needed to see where the money is leaking. We invite you to contact us – we will be happy to analyze your work model during a short consultation.

A small correction in briefing is thousands of zlotys in savings per quarter.