To have good decision-making, give people closest to the problem decision-making power

I think that these can safely be considered to be “laws”:

  1. Individuals closest to a problem have the most accurate and complete information about the problem.
  2. The further removed an individual is from a problem — by time, space, rank — the less information and the less accurate information he has about the problem.
  3. Good decision-making requires accurate and complete information.

Therefore:

  • To have good decision-making, give people closest to the problem the power to make decisions. For example, give decision-making power to those people on the factory floor.
  • Avoid centralizing decision-making power to a few individuals at the top of a hierarchy.

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