How do I make a decision authority matrix?
Start with the 10 to 12 decisions that reach the owner most often. For each, name one owner, set a spending limit, spell out what sends the decision back to the owner, and define what done right looks like. Keep the matrix to one page, and review it after 30 days.
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The four columns
- Owner: One name. Not a committee. Not a title that doesn't exist yet.
- Spending limit: A hard number. What can they approve without asking you.
- Escalation trigger: The specific condition that brings it to you.
- Standard: What "done right" looks like. So "good" isn't subjective.
A sample matrix for a 60-person company
Every amount below is an example. Set your own.
| Decision | Owner | Spending limit | Escalation trigger | Standard |
|---|---|---|---|---|
| Hires (individual contributor) | Function head | Inside the approved salary band | Over the band, or team size changes more than 20% | Scorecard signed, 2+ references |
| Firing and performance exits | Direct manager | Not applicable | Leadership role or legal risk | Improvement plan completed or cause documented |
| Vendor contracts | Function head | Up to $10,000 a year | Over the limit, or a commitment longer than 12 months | 3 quotes, a termination clause |
| Client discounts | Sales lead | Up to 10% off list | Over 10%, non-standard terms, or a strategic account | Margin floor held, CRM updated |
| Refunds and credits | Client success lead | Up to $500 per case | Over the limit, or more than 3 cases from one client | Root cause logged |
| Marketing spend | Marketing lead | Up to $5,000 per campaign | A new channel or a brand campaign | KPI defined before launch |
| Invoices and payables | Finance lead | Up to $5,000 per invoice | Over the limit, or a new vendor | PO matched, 30-day terms |
| Client escalations | Client success lead | Not applicable | A legal threat, or a $50,000 account at risk | 48-hour response, written plan |
Which decisions go in first
Start with the decisions people interrupt you about most. If you're unsure, keep a 7-day decision log. Record every decision someone brings you for one week. Put the repeat decisions in the matrix first.
Why RAPID and RACI aren't enough here
RAPID and RACI assign roles: who recommends, who agrees, and who decides. That works in a large company where decisions already involve several people.
In a 60-person company, the owner is the default approver. A role doesn't change that. A number does. Put a hard limit in the cell so the named person can say yes without asking.
How to roll it out
Fill it in during one leadership meeting. Put it where the team works. From then on, the owner stops answering requests inside a limit and sends them back to the person named. Exceptions come up once a week, in the weekly review.
Review the matrix after 30 days. If the same escalation comes up week after week, the limit may be too low. Change the number and keep the decision where it is.
What happens when it works
In one engagement, $1.2M of $1.4M in overdue receivables was collected in three months once one person owned receivables.
The matrix and AI
An agent can approve a refund under a limit only when that limit is written down. Every agent runs until it hits a gate a person still owns. The matrix shows where those gates are.
In SCOPE™ by Efficiency Sprint, this is Ownership: people run it reliably. It comes before Pulse, where AI watches and reports, and Engine, where AI acts within guardrails.
Efficiency Sprint makes companies operationally ready for AI. The operational AI readiness check takes about two minutes and shows where your company stands.
Questions
What's the difference between a decision authority matrix and RACI?
RACI says who is responsible, accountable, consulted and informed. A decision authority matrix says who can say yes, up to what amount, and what brings the decision back to the owner. RACI maps roles. The matrix maps limits.
What should the spending limits be?
Start with the amount the owner already approves without reading. If you'd approve a $500 refund without a second look, set that as the limit. Raise it when the same exception keeps coming back.
Who owns decisions nobody is assigned to?
The owner, by default. That's how the bottleneck starts. Give every recurring decision on the list one name. Add anything new that comes up twice.
How often should we update the matrix?
After the first 30 days, then every quarter. Prices change. People get promoted. Volume grows.
Can an AI agent use a decision authority matrix?
Yes, for rows with a written limit. Under the limit, the agent acts. Over it, the agent stops and the named person decides. You always need to know who is responsible. And it can't be AI.