The academic success of college teachers is crucial for fostering a smart generation in the future. This study examines the interconnectedness of decentralization, leadership, the academic environment, student satisfaction with academic policies, and academic performance. The study also explores the impact of academic self-efficacy as a moderating variable on the relationship between satisfaction with school rules and academic achievement. Additionally, it delves into the conditions of the academic environment, academic performance, and satisfaction with academic policies. The effect of leadership-mediated decentralization policy on academic performance and satisfaction with academic policies remains unclear in this study. A total of 283 college-level employees participated in the survey for this study. The data were analyzed using Structural Equation Modelling, with the analysis conducted using Smart PLS version 4. The findings of the study revealed that the hypotheses proposed in this study had a significant impact on academic performance. This study shows how decentralized leadership and policies benefit higher education teachers. Collaboration between subordinates and superiors is crucial for establishing a conducive working environment and enhancing productivity in higher education. It emphasizes the importance of stakeholders in higher education creating policies that incentivize academics to actively engage in all facets of the institution, including decision-making.