Policy slack combines structure with flexibility, empowering leaders with the room to move, own decisions, and grow.
A few years ago, I watched a team lead wrestle with whether to pull the trigger on a stressful client decision and the potential for being reprimanded. A stringent policy said one thing. The short timeline said another. They didn’t have permission – the leader had judgment. And that individual used it. The result? The client stayed on schedule, the trust deepened, and the leader grew.
That moment stuck with me. Not because it was perfect, but because it showed what happens when we stop trying to script every move and start trusting the people closest to the work.
In times of uncertainty, organizations tend to tighten the reins. We add more structure, more rules, more safeguards, often in an effort to reduce risk. However, ISG, an architecture, engineering, environmental, and planning firm, has found real progress comes not from over-engineering control, but from developing leaders who can think clearly in the chaos.
That is where the idea of policy slack comes in.
Policy slack refers to the space within a system – flexibility in expectations, procedures, or roles – that allows people to respond effectively to change. When applied to leadership, it becomes something powerful: room to move, own decisions, and grow.
Structure with flexibility.
The combination of strong systems and thoughtful flexibility has shaped how we grow our teams. We value transparency at every level and create space for individual autonomy. Clear structures, like two team leaders to anchor accountability or holding team meetings that connect people across geographies, help define expectations while leaving room to adapt.
But not everything needs to be a policy. Sometimes, clarity comes from a shared mindset rather than a written rule. Frameworks that support autonomy often yield better results compared with processes that restrict it. Teams need to feel the weight of decisions, navigate complexity, and act in the best interests of their colleagues.
Policy slack can benefit a business when:
- You trust your leaders but see them blocked by red tape.
- Your environment is changing faster than your rulebook.
- Innovation or responsiveness is suffering due to approval delays.
- There are a number of experts who know they need to make decisions based on client needs rather than a formal policy process.
- Rigid processes are slowing down decisions and blocking forward progress.
Not every team is ready for it, but the right conditions unlock performance that structure alone can’t.
Performance is a mindset, not a manual.
High-performing teams don’t just follow steps, they understand their purpose. Performance thrives when there is clarity of purpose, space to grow, and support along the way.
In a system built on trust and accountability, leaders aren’t managed by manuals. They are coached to think critically, communicate transparently, and keep people at the center of every decision. Growth happens when individuals are given the tools to navigate complexity and the responsibility to do it well.
Even in high-functioning teams, gaps emerge – in conversations, in exit interviews, in the patterns noticed over time. The key is to listen, adapt, and stay grounded in continuous improvement.
True performance culture is something built through consistency, clarity, and care.
Raising the bar, not writing the rules.
The truth is, policy slack isn’t about relaxing standards. It’s about trusting leaders to rise to the occasion with the coaching and tools to do so. We don’t need more rules, but rather more people who are confident and capable enough to lead with intention. Without that foundation, adding more framework, rules, or process only creates noise. Leaders must be coached not just to follow process, but to recognize when process is truly needed. Purpose should drive the method – otherwise, a policy thrown at the wrong problem, or applied at the wrong time, will be ignored, misused, or even make things worse.
To create an environment where flexibility fuels performance, not chaos, organizations need:
- Strategic leaders who are clear on values and empowered to act.
- Guardrails that replace rigid policy with clarity of intent and outcomes.
- Cross-functional alignment to ensure the slack supports the mission – not undermine it.
- Problem solvers over policy pushers, giving teams autonomy to bring creativity to clients.
- Confidence instead of fear, knowing that performance coaching can develop agile, adaptable employees.
Policy slack isn’t the absence of discipline. It is the presence of trust, guided by purpose.
Dave Williams is a performance strategist with ISG. Connect with him on LinkedIn.