Organizational leaders often feel overwhelmed by the sheer volume of tasks on their to-do lists.
They understand that leadership requires intense effort, but the demands often exceed their capacity, leaving them exhausted and at risk of burnout.
A company can expand its capacity to meet demand.
However, this is not true for leaders who are constrained by time. To address this challenge, a strategic shift in how leaders allocate their time is essential.
The solution lies in the 19th-century economist David Ricardo’s theory of comparative advantage.
This principle, traditionally applied to international trade, argues that individuals or nations should focus on activities where they have a distinct advantage and leave other tasks to those better suited to handle them.
Leaders, similarly, should prioritize the tasks that no one else in their organization can perform as effectively and delegate or eliminate the rest.
Both A.G. Lafley, during his tenure as CEO of Procter & Gamble (P&G), and Roger Martin, as dean of the Rotman School of Management, successfully applied this principle to transform their respective organizations. By focusing on their unique strengths, they created significant value while empowering others to take on responsibilities that had traditionally fallen to them. The recommended approach involves four steps:
- Eliminate Tasks with No Advantage
Leaders must remove activities where they lack any clear advantage.
For example, when Martin became dean at Rotman, he delegated faculty hiring – a task traditionally handled by the dean – to a capable associate dean, freeing time for transformational priorities.
Similarly, during Lafley’s second term as CEO of P&G, he delegated investor relations to the CFO, recognizing the latter’s expertise in the area.
- Delegate Tasks with Modest Advantage
Some tasks, while important, can be performed nearly as well by others.
For instance, Lafley trusted his team to handle creative reviews of advertising and external representation, allowing him to focus on areas where his contribution was most impactful.
Martin adopted a similar approach by delegating financial management to a skilled administrator, ensuring better use of his time.
- Focus on High-Value Tasks
The time saved from delegating enables leaders to concentrate on activities where their impact is unmatched.
For Martin, this meant reshaping Rotman’s reputation by publishing widely and engaging in thought leadership.
His efforts attracted donors and enhanced the school’s profile.
For Lafley, focusing on consumer-centric innovation at P&G drove product success and reinvigorated the company’s commitment to its customers.
- Prioritize Unique Leadership Roles
Some responsibilities are exclusive to the leader.
Building strategic partnerships and cultivating future leaders were areas where Lafley’s involvement was indispensable at P&G.
Martin, on the other hand, prioritized one-on-one meetings with faculty, fostering engagement and alignment with the school’s vision.
This approach has also been embraced by leaders such as Trina Spear, CEO of FIGS, and Jørgen Vig Knudstorp, former CEO of Lego Group.
Both restructured their time by delegating tasks to capable teams, enabling them to focus on strategic and creative initiatives that drove growth.
By making deliberate choices about which tasks to retain, leaders can maximize their impact while avoiding burnout.
This method requires careful consideration and the courage to trust others with significant responsibilities.
Ultimately, leaders who focus on their unique strengths set the stage for long-term organizational success.
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