Canonical definition

What are decision rights?

Decision rights specify who has authority to make a decision and what limits apply. This page uses four practical roles: decide, consult, inform, and veto. Writing them down exposes unclear authority; the company still has to provide the information, capability, and follow-through needed to use it.

In one sentence

The written record of who carries each decision in a company.

What this means for the owner

If people keep asking permission for decisions they should be able to close, the issue may not be confidence. It may be that the company never named the deciding right. Check where approval requests repeat, where exceptions escalate, and where the same call is reopened after meetings.

Do not add more meetings before the decision right is visible.

What it actually does

The practical model on this page separates four roles:

Use the existing decision-rights matrix to record the decision, authority limit, escalation route, and execution owner together.

Framework distinction: PMI describes RACI as a responsibility chart for project work. Bain's RAPID model separates Recommend, Agree, Perform, Input, and Decide. The four roles above are the working model explained here, not a universal standard or a replacement for those frameworks.

What it is not

Three common repeated situations

Pattern 1

The pricing decision that was three decisions.

Pricing seems to belong to the head of sales. In reality it may touch sales, finance, delivery cost, and owner exception authority. The first check is who owns the final decision.

Pattern 2

The hire that needed a veto.

A senior hire may look like an operating decision while the agreement gives veto rights to the board. The risk is not only hiring quality. It is unconfirmed authority.

Pattern 3

The exception that escalated to the owner.

A manager-level exception escalates because the manager's authority is not explicit. The first check is the threshold, not the personality of the person escalating.

When to use it

Name decision rights when:

Skip the formal exercise when:

Common questions

How is the four-role decision-rights model different from RACI?
RACI identifies who is responsible, accountable, consulted, and informed for work. The practical model on this page records decide, consult, inform, and veto for a decision. Neither label set replaces the actual authority, execution owner, or escalation boundary.
Where should decision rights live as a document?
Keep the current record where the people using it can find it: the operating manual, governance records, or company wiki. Name who maintains it and check it when roles or authority change.
Does every decision need named rights?
Map recurring, disputed, consequential, or cross-functional decisions first. Routine calls can sit within an agreed role boundary; exceptions still need a named escalation route.
Does the board hold veto on every decision?
Do not infer a blanket veto from the word board. Confirm the applicable authority in governing documents, agreements, delegated approvals, and law with the appropriate legal professional. A working matrix records that authority; it does not create or override it.
When should an owner work with Stan?
When unclear decision rights keep creating delay, rework, owner dependence, or failed delegation. The work examines recurring decisions, actual approvals, and the authority change to test with the people involved.

When decision rights need ongoing business advisory

One decision-rights record can be enough for a contained approval. Ongoing advisory becomes useful when the same authority conflict appears across pricing, hiring, spending, customer promises, leadership roles, or board involvement.

Stan and the owner start with one decision that keeps returning. They compare the written structure with what people actually do, name the authority limit, assign the execution owner, and run the decision without the owner stepping back in. The next meeting uses the result of that test, not the wording of the document, to decide what changes next.

The working output is a current decision-rights record, an escalation path, a named internal owner, and evidence that the decision closed at the intended level. Governing documents, employment terms, investor rights, and legal authority still require the appropriate professional.

Use this before you add another fix.

Work with Stan on the disputed decisions, current approval path, and first authority change to test. The business advisory page explains the ongoing relationship and scoped company work.

Work with Stan on decision rights Business problems