Coaching as a Catalyst for Devolved Authority: Addressing the “Illusion of Empowerment” in Adaptive Leadership

This study examines why leaders struggle to shift from involvement to true devolution of authority, creating an “Illusion of Empowerment” that limits organizational adaptability. Using survey data from 620 leaders across eight sectors and an intervention subset ( n  = 130) comparing formal training with managerial coaching, we test whether psychological barriers mediate the relationship between follower readiness and delegation and whether coaching strengthens devolved (S4) behavior. Results indicate that delegating is rare (2%) and accountability anxiety mediates the link between readiness and delegation; coaching is associated with higher reflective capacity and greater S4 frequency, particularly under psychological safety. The findings position coaching as a scalable intervention for distributed leadership.