Allocation of decisions
A short, written and accepted document stating who decides what, up to what amount, with whom, and who is informed: between owners, board and management, or between the executive and his deputies.
What it changes for the executive
When everyone decides everything, nobody decides. A written allocation settles most governance conflicts before they arise, because it decides the question before a concrete case makes it personal. It is also the tool of delegation: the executive who delegates the task but keeps the decision manufactures an expensive executor; the one who writes down what is delegated, what is not and the signals that would bring the decision back up, delegates for real.
Example
Who decides an investment above 50,000 francs, a hire at management level, a discount above five per cent, a distribution: four lines that avoid months of friction.
A term that is missing?
Describe the situation in a few lines; the reply is personal.