Governance and Decision Rights

Decision Rights: Who Decides What in a Central Model

How to spell out which decisions sit with a central team, which stay local and which need joint agreement, with a simple way to record and test the answers.

On this page
  1. What decision rights are
  2. Three categories
  3. How to work out the split
  4. Recording the answers
  5. Common problems
  6. Linking rights to forums and owners
  7. Adjusting over time

What decision rights are

Decision rights describe who has the authority to make a particular kind of decision, who must be consulted first and who can overrule whom. They are often left implicit, which works until two people each believe a decision is theirs, or each believes it is someone else’s.

In a central model the question becomes sharper. Some decisions affect everyone and need one answer. Others depend on local circumstances and are better made by people close to the work. A third group affects both and cannot be settled by either side alone.

Three categories

Central decisions

These are decisions where a single answer is needed for the organization to function, or where the risk of inconsistency is high. Typical examples include:

  • which platform is used for a shared function;
  • minimum security settings for company systems;
  • the common definitions used in company-wide reporting;
  • budget for shared infrastructure.

The central team decides, after consulting those affected.

Local decisions

These are decisions where the local team has the context and bears the consequences, and where variation does little harm. Examples might include how a team schedules its own work within the shared process, which approved optional features it switches on, or how it trains its own staff. The local team decides and does not need permission, though it may need to inform others.

Joint decisions

Some decisions need agreement between central and local parties. A change to a shared process that alters how a unit serves its customers is a typical case. The rule should state what happens if agreement cannot be reached, for example escalation to a named person or forum. Without that, joint decisions tend to stall.

How to work out the split

Start with the decisions that actually cause friction rather than trying to catalogue everything. A short workshop with central and local representatives usually surfaces them quickly.

For each decision, a few questions help:

  1. Who is affected? If the effects fall mainly on one unit, lean local. If they fall on many, lean central.
  2. How costly is inconsistency? Differences in data definitions or security settings may be expensive; differences in meeting schedules rarely are.
  3. Who has the information? The best decision-maker is often whoever knows the most about the situation.
  4. How reversible is it? Easily reversed choices can be made faster and lower down.
  5. Who bears the risk? Authority and accountability should sit together where possible.

None of these gives an automatic answer, and reasonable people may weigh them differently. The aim is a considered, written position that can be revisited.

Recording the answers

A decision rights table is usually enough. Rows are decisions, columns are the roles involved, and each cell says whether the role decides, must agree, must be consulted or is simply informed. If this resembles a RACI matrix, that is intentional: the format is similar, although decision rights focus specifically on authority rather than the full range of task roles.

A brief example, using illustrative decisions only:

Decision Central team Business unit
Choose the shared platform Decides Consulted
Set a unit’s own approval limits within policy Informed Decides
Change a shared workflow Agrees Agrees

Keep the table to a page. A long one is rarely read and quickly goes out of date.

Common problems

Decisions retained “just in case”. Central teams sometimes keep authority over minor matters out of habit. This slows local work and can fuel change resistance. Periodically ask whether each central decision really needs to be central.

Unclear escalation. If two parties disagree and nothing says who settles it, the matter sits. Name the escalation route.

Rights without resources. Giving a unit authority over a decision but not the budget or skills to make it well leads to poor outcomes or quiet reversal.

Decisions made, then reopened. Recording who decided and when, with a one-line reason, reduces repeated debate.

Shadow decisions. If people routinely go around the formal route, the formal route is probably too slow or too remote. That is useful information rather than only a discipline problem.

Linking rights to forums and owners

Decision rights are not exercised in the abstract. They are used by named people in particular meetings. A system owner usually holds many of the day-to-day decisions, while a steering committee takes those involving priorities, money or disputes between units. If the table says a group decides something, that group should exist and know it.

Adjusting over time

Decision rights should shift as the organization does. A new central function may start with tight control while standards are being established, then hand more decisions back to units as trust and capability grow. The reverse can also happen after a serious failure. Treat the table as a living record and revisit it as part of regular governance reviews.

The right split varies by organization, and nothing here guarantees faster or better decisions. Its value is in replacing guesswork with a shared, visible understanding of who decides what.

The complete guide to governance and decision rights

Governance for Centralized Systems: Roles, Forums and Decisions
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