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Purpose

The purpose of the paper is to explore why rules might be better than managerial discretion when the leadership intends to transform a desired policy into reality.

Design/methodology/approach

Leaders need discretion in order to deal with the great expectation demanded on them. However, discretion can open up to threats to the leadership's pursuits of rational acting. The first threat is related to emotion and impulsive behaviour and the second threat is related to conflict and opportunistic behaviour. The paper examines these threats.

Findings

In order to handle threats to rational acting the leadership has to establish and follow appropriate rules.

Originality/value

The paper challenges the notion that the leadership should be provided with ample discretion when they intend to transform an intended policy into reality. The paper claims that unbridled discretion might be risky and proposes that the critical and neglected challenge is to establish appropriate rules that channel and focus leadership effort.

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