The Comparative Advantage of Leadership: Why Leaders Shouldn’t Do It All

Leadership is demanding, and it’s tempting to think that taking on more responsibilities is the key to success. However, leaders who try to do it all often find themselves overwhelmed, burnt out, and unable to deliver their best work. Instead, effective leaders focus on the tasks where they can add the most value and delegate the rest.

This approach, rooted in the principle of comparative advantage, was popularized by A.G. Lafley and Roger L. Martin in their insights on leadership. Their method encourages leaders to focus on what they alone can do best, leaving other responsibilities to those who are better suited or equally capable. Here’s how leaders can apply this principle to lead more effectively.

The Limits of Leadership Capacity: Unlike organizations, leaders cannot infinitely expand their capacity to meet increasing demands. As Lafley and Martin highlight, “There are only so many hours in a day.” Attempting to increase productivity by simply working harder is unsustainable. Instead, leaders must prioritize their time and energy to avoid burnout and maximize their impact.

Focus on Your Comparative Advantage: The principle of comparative advantage, borrowed from economics, suggests that leaders should spend their time on tasks where they have a unique ability or expertise that no one else can match. For instance, Lafley’s ability to personally connect with consumers and drive innovation was a key differentiator during his time at Procter & Gamble. By focusing on this strength, he delivered more excellent value than if he had spread himself thin across other responsibilities.

Delegate Strategically: Delegation is not a sign of weakness—it’s a strategic tool. Leaders should identify tasks that others can handle equally well or better. This frees up time for critical tasks and empowers team members to take ownership and grow. For example, delegating operational responsibilities allowed Lafley to dedicate more time to high-impact activities like building strategic partnerships and shaping P&G’s innovation strategy.

Reinvest Time in High-Value Activities: Delegating low-priority tasks is only half the equation. Leaders must reinvest the time they save into high-value activities directly impacting organizational success. For Lafley, this included fostering relationships with stakeholders, mentoring future leaders, and spearheading critical innovation initiatives. His involvement made a decisive difference in these areas.

Build a Team You Can Trust: Effective delegation requires trust in your team’s abilities. Leaders can confidently delegate tasks and focus on their strengths by building a capable and empowered team. This trust also creates a culture of collaboration and accountability, where team members feel valued and motivated to excel.

Avoid the “Should-Do” Trap: Many leaders fall into the trap of taking on tasks simply because they “should” do them, whether due to tradition, expectations, or habit. Lafley and Martin emphasize the importance of questioning these assumptions. Instead, leaders should focus on tasks requiring unique skills and delegate or eliminate the rest.

Leadership isn’t about doing everything—it’s about doing the right things. Leaders can maximize their impact by focusing on their comparative advantage, delegating strategically, and fostering a stronger, more capable team. This approach benefits the leader and drives organizational success and resilience.

At Apex GTS Advisors, we help leaders identify their strengths, build effective teams, and implement strategies that optimize their time and impact. Let’s start a conversation if you’re ready to take your leadership to the next level.