How to delegate decision making within your business

How to delegate decision making within your business

I often have clients asking me how they can streamline their legal and contracting processes. For smaller business owners, I know that it can be incredibly difficult to relinquish the temptation and control of signing off on every decision.

One key aspect for any business is to ensure that it has clear lines of responsibility and accountability.   It’s important in any business that each person knows their level of authority to negotiate and enter into contractual arrangements.  However, at the same time, the people with such authority should be held accountable to the business (and management) if an issue arises with a negotiated arrangement.

This can be managed through implementing a number of simple yet effective processes.  For those of you who know me, I am incredibly organised and process driven, and this is one area of the business which benefits greatly from having some great systems in place.  For example:

  1. Document each of the roles within your business and to whom they report (this may already be sitting with your HR team).
  2. For each role that has decision making abilities (or to whom you would like to delegate some), decide what types of contracts or decisions the person can make and what financial value can be signed off by that person.  You could even include a multi-level sign off if more than one person is required to give effect to certain decisions (for example Sales Manager + Regional Manager).
  3. Communicate your policies to the business and ensure that the documents showing the delegations are accessible by all relevant parties.
  4. Finally, one key part is to have a good central record of decisions that were made. This should include a document tailored to your business setting out the decisions that were made, contract that was signed, and other key details such as the main risks, costs and benefits to the business.

If you would like assistance to stream line your business or decision making processes please contact me on  1300 033 934 or at  for a no obligation chat.  I love being organised and organising other people’s businesses!