M20BuildPeople· Module 3
Decision Rights
Every decision waits for the founder because nobody knows what they are allowed to decide.
- Stabilise
- Scale
- Institutionalise
- Governance
- Leadership
- People
- ~5 min · Matrix
The business problem
When decision rights are unwritten, capable people escalate by default. The founder becomes a queue. Decisions are slow, staff stop taking initiative, and the business moves at the speed of one person's inbox.
Why it matters
Written decision rights let the business move without the founder while keeping control where it matters: on high-value, high-risk or irreversible decisions.
What you will learn
- Map who decides, recommends, is consulted and is informed
- Set approval limits by value, risk and reversibility
- Distinguish decisions to delegate from those to keep
- Review exceptions instead of approving every decision
Core questions
- Which decisions reach me that someone else could make?
- What limit — of value, discount, risk — would make delegation safe?
- Who must be consulted before a decision is made?
- How will I see decisions made within the limits?
Work through the module
CaseWhat is happening?
Professional services, 25 people · Illustrative teaching case
A founder approves every quote, discount and client escalation. Quotes wait days. She writes an approval matrix: managers can approve quotes within a margin floor, discounts up to a limit, and client credits up to a set amount. She reviews exceptions weekly. Quote turnaround falls from days to hours.
Full teaching case: The Founder Bottleneck
DecisionWhat does the leader need to decide?
Keep approving everything, or accept that some decisions will be made differently from how you would make them?
FrameworkHow should they think about the problem?
Decide, recommend, consult, inform — with limits
For each type of decision, name who decides, who recommends, who must be consulted and who is informed. Add limits by value, risk and reversibility. Low-risk, reversible decisions move down; high-risk, irreversible ones stay up.
ToolWhat can they use?
Approval matrixMatrix
- List 20 recurring decisions
- For each: decide, recommend, consult, inform
- Set value and risk limits
- Define how exceptions are reported
ApplicationHow does it apply to their business?
Apply it to your own business:
- List the last 20 decisions that came to you
- Mark which needed you and why
- Write a limit that would have let someone else decide
ImplementationWhat changes?
What should change in the business:
- Publish the approval matrix
- Configure limits in your systems where possible
- Review exceptions weekly rather than approving individually
ReviewDid it work?
How to tell whether the change worked:
- Has decision turnaround time improved?
- Are decisions being made within limits?
- Has the number of escalations to you fallen?
After this module you should be able to decide
Keep approving everything, or accept that some decisions will be made differently from how you would make them?
And leave with: An approval matrix for your most common decisions.
Sequence · People
Related modules
Part of these learning paths