In many companies, decisions are made ‘top-down’. Owners and managers think through improvements, make decisions and rally their teams to implement them.

Although this approach is valid, it has a number of downsides.

Most businesses suffer from information asymmetry. This occurs when people at the top have less information than those closest to the work. It can also occur when information is skewed in an attempt to provide managers with good news. In these cases, the quality of decisions is impacted by the quality of information available.

Further, there are fewer people at the top of the organisation to make decisions. This delays decisions and constrains the rate of improvement.

The solution is to take a ‘bottom-up’ approach by engaging staff at all levels in line with their skills and experience. This is best managed through cultural change and supported from the top.

In doing so, owners and managers can be confident that the business is improving in the most efficient way.