I learned this practical management approach over 20 years ago and still use it today. Here’s how you can use it.

Workplaces face adjustment challenges. I have seen this in organizations, in virtually every industry and at various levels. As corporations grow to be more complex, the gap between senior and middle management increases.

I have been successful in introducing a “federal versus state” approach to labor policy. In this model, corporate (or federal) policies are defined and teams or departments have the freedom to adapt to those policies based on their unique needs. These principles help our leaders make decisions that support their goals while positively impacting the worker experience through autonomy and trust.

I originally learned the concept of federal versus state from a friend who helped organize the 2002 Winter Olympics in Salt Lake City. I was a young manager then, performing my first operational role and my first task was to create a business structure. The biggest challenge was ensuring clarity about what needed to be done and who was responsible for overseeing it.

Here are some ideas on how to best ensure this vital balance in any workplace.

Creating a “federal” standard gives the company overall direction and purpose

Establishing a clear company mission and vision will provide the right direction for initiatives at the federal level. This step is critical. Turning this key gets the basic elements of your mission working, after which every thing else will fall into place.

Once you establish your mission and vision, you can rely on them to make overarching decisions about how to implement policies.

A recent example of this at BambooHR was managing the internal use of AI across the company. We have created federal AI policies and principles on the use and ethics of AI and related technologies so that staff understand the fundamental principles.

Another example is our total compensation decisions – we have a compensation philosophy that gives company-wide guidelines for advantages, incentives and base pay.

Ultimately, defining the federal elements of your organization means ensuring that your mission, vision and values ​​are reflected in your corporate policies and business goals. It is also vital that everybody has insight into these rules and knows in what direction the company is heading.

Outlining “state” initiatives can alleviate potential internal tensions

Once a federal company foundation is established, we have clear parameters that allow us to acquire more detailed and personalized information at the state or team level. A prescriptive approach to smaller-scale decisions helps be certain that these adjustments still align with the company’s core principles. Clear boundaries also reduce decision fatigue by determining which selections can be made at the state level and which require federal approval. At BambooHR we do it in several ways:

• After creating our AI policy at the federal level, teams got the opportunity to find out direction at the state level. This implies that teams – and even people in different roles – can resolve what AI tools to use and how to use them inside company guidelines.
• Our federal wage decisions set wage standards. Then, at the state level, chapter leaders build on these guidelines and create financial incentives for team members. For example, bonuses and profit sharing are treated in a different way in our revenue organization.
• While BambooHR’s policy supports office, hybrid and distant working, teams can resolve on which days and how often to schedule in-person meetings, and have the autonomy to handle individual work accommodation requests.
• Across the company, employees in search of promotion must exhibit commitment and understanding of our company’s mission and contribution to achieving it. Department management can then determine beyond this the skills and criteria needed by their teams.

My friend at the Salt Lake Olympic Committee taught me that it is vital to grasp that every job is vital to each the company and the worker. This vision considers every position right down to understanding how the parking attendant connects to the organization’s mission.

When our positions and areas of influence are clearly defined and connected to our mission, we see much less potential for tension throughout the organization. (*20*) are often less siled because people exercise state-level authority and understand the interconnected value of their work.

Clarifying the boundaries between federal and state can build a stronger culture

In summary, outlining the overarching federal and state elements of your organization and connecting people to your mission will avoid a lot of confusion about responsibilities.

It is not unusual for employees to not understand why they are being asked to perform a specific task. Not knowing the purpose and value of the effort is frustrating for the worker, detrimental to the quality of labor and negatively impacting the worker’s experience.

It’s not only frontline employees who profit, as connecting to the mission empowers managers as well. When leaders at any level see opportunities but don’t have enough power to attain positive results, they lose hope.

“I have to deliver something, but I have no authority to do anything” – this is a common refrain that kills company culture. Everyone at work desires to have an influence. Managers especially need to prove themselves and be great, not waste time attempting to determine who should do what.

Outlining levels of autonomy empowers managers to run their departments in the best way possible and provides each worker with a framework for making decisions that can spark creativity and boost morale.

Identifying a federal structure and empowering managers and employees to make decisions at the state level will ultimately profit your culture, workplace engagement, and business results.