Decision authority is the agreed scope within which someone can decide and act for the company. It states what they can approve, the limits that apply and when another person’s approval is needed.

Make the boundary usable

An operations leader might adjust schedules within the agreed staffing plan while requiring CEO approval to add a position. Define the actual boundary and how an urgent exception is raised. A title or KPI alone does not tell the person what they can authorize.

Authority needs information, capability and support. When a leader repeatedly brings a decision back, investigate what is missing. If you repeatedly override assigned decisions, compare the stated arrangement with actual practice.

Ownership, governing bodies, the CEO and functional leaders carry different responsibilities under the company’s actual arrangements. Keep current boundaries with the role or assignment and review them when the company plan or authority changes.

M19: Functional Leaders applies this to functional responsibility. M25: Role Transition and M27: Succession apply it as your role changes.