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Why do many CEOs have difficulty delegating? What does AI have to do with this?

Delegating tasks is part of the routine of executives in high leadership positions. It is a stance that contributes to improving the team's competence and even helps keep employees motivated. However, for many, assigning tasks and responsibilities to others is still a great challenge. A 2023 Gallup State of the Global Workplace study, conducted with over 1,400 executives in the United States, identified that three-quarters of respondents have difficulty delegating.

For Rodrigo Magalhães, partner at EXEC, many CEOs end up getting involved in operational issues due to reasons that may include a lack of confidence, courage, and a good dose of perfectionism. Trust is an important element when delegating tasks and has a strong connection with courage. To trust others, they need to have the audacity to transfer some decisions and actions to their direct and indirect team.

For Magalhães, delegating does not necessarily mean that the activity will not be supervised. "Even if the CEO requests a task, function, or activity, it will need to be monitored so that he can stay informed about what is happening."

Furthermore, according to him, the difficulty in delegating can also be linked to the professional's own personal characteristics, such as being centralizing and perfectionist.

The difficulty in delegating can cause some negative impacts not only for the professional but also for the company. Among the points highlighted by Rodrigo in this regard are the lack of long-term vision, lack of attention to what is happening in the market, and the absence of focus on macro objectives. The CEO who is too focused on the day-to-day ends up having less time to think about innovation, transformation, and the future. He misses a lot by not looking outside the company, missing what is happening in the market, in addition to not paying attention to the broader goals of the organization, which involve the major transformational actions that help move the company's needle.

Can AI hurt a CEO's ability to delegate?

The advent of Artificial Intelligence (AI) has brought some concerns in the market that the technology may replace certain positions and, for some, it may further reinforce the fear of delegating tasks or functions. According to a survey conducted by ADN Digital in several countries, CEOs are hesitant about being replaced by machines – 43% of respondents confirmed feeling this insecurity. "I recently participated in a forum in London that brought this topic to discussion. Some elements in this regard have not yet evolved, mainly concerning the judgment of value, that is, AI still does not clearly know what is right and wrong," emphasizes Rodrigo.

The EXEC partner reassures and informs that AI should not replace a CEO, as it is not capable of bringing an important attribute for decision-making, intuition.For decision-making, the final word still belongs to a human, who commits to an information, action, diagnosis, or solution, and uses AI as support for the decision.

Magalhães also points out that AI can assist the CEO in various areas, whether in decision-making, providing market insights and analyses, or helping to formulate business strategies based on trends and up-to-date data. "Additionally, it can improve business communication by assisting in the writing and editing of corporate documents such as reports, important emails, speeches, and press releases, and contribute to time management," he emphasizes. According to ADN's research, 45% of executives stated that they make decisions based on data and information using ChatGPT.

The EXEC partner also highlights that AI can assist in generating creative ideas for the development of new products, services, or marketing strategies, as well as create educational materials and provide personalized content for team training or individual professional development. "ChatGPT, for example, has a lot of information and a broad database, which is important to understand what the market is doing, as well as to facilitate the creation of content for training and employee development," he emphasizes.

According to the EXEC partner, the CEO who does not yield to AI may lose market share.

How to delegate more and become more strategic?

At a time of major transformations in the market, Rodrigo chose five tips to help CEOs let go of the operational routine and become more strategic.

  1. Have a good "N1". It is important that he is surrounded by good leaders below him, such as vice presidents, directors, and managers who can handle operational issues. They need to be very competent so that the CEO can trust them.
  2. Create routines to monitor the broader goals. This also involves establishing some management rituals so that the CEO does not feel too distant from the day-to-day activities.
  3. Use technology to keep track of what is happening. "But that doesn't mean the leader needs to be copied on all emails, messages, or be in all WhatsApp groups," he warns.
  4. Practice delegating every day and question yourself at all times. It is a behavior exercise, allowing people to make decisions and avoiding management decentralization.

For Magalhães, the CEO's role is to lead the team, define strategies, and make decisions that require creativity, business vision, and empathy. "It is through delegation that the leader can bring out the best in their teams and exercise strategic people management," he concludes.

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