Prompt Progress and the Art of Mastering Business Decisions.
Ever found your business with a new expensive piece of plant or equipment which you do not remember approving?
Or a new person starting, that you do not remember agreeing to?
Or a latest sales strategy or commission plan, that no one can seem to locate the documentation of?
or perhaps you’d like to take a holiday and ensure your business runs smoothly whilst you relax?
Businesses make decisions and act on these decisions every day. The decisions that are made can vary from rostering employees, to ordering supplies, making agreements and bookings with clients, making payments, entering new commercial contracts, and hiring new employees and engaging new suppliers.
But not all decisions can be made by a business owner, or if they are at some point this will create a bottle neck and stifle workflow, productivity, and efficiency.
So how can you ensure decisions are made with informed information, by the right person, at the right time.
One answer can be ~ Delegations of Authority.
What is a Delegations of Authority business tool?
A Delegations of Authority provides information on transactions within your business, who can perform them, and to what limit. This information can be built into a reference document and core business software.
A Delegations of Authority can answer questions such as,
Who can raise Purchase Orders and to what value,
Who can make bank transactions and to what value,
Who can engage third party providers such as lawyers, accountants, consultants,
Who can negotiate or sign Commercial Contracts,
Who can hire and terminate Employment Contracts,
Who can approve overtime,
Who can approve leave,
I am a New Manager, what I am authorised to decide on.
Do any of these questions sound familiar?? If yes, a Delegations of Authority will reduce these pain points and provide these benefits.
What are the benefits?
There are many benefits of a clear Delegations of Authority some of these include:
Clarity of Responsibilities: Centralised and clear information that is readily available on what and who can perform transactions and tasks that can form a legal obligation on the business,
Empowerment of Employees, and Training and Development: Provides a framework for employee training and development by clearly outlining the skills and competencies required for specific roles with decision-making authority. It is particularly useful in induction and training of new employees and particularly new managers,
Efficient Decision-Making: A business tool that will guide decision making in an authorised and efficient manner and can be incorporated into workflow software and document routing software for greater efficiency,
Flexibility and Adaptability: As the business grows and more people become involved a decision-making authority can be adjusted based on evolving needs of the business,
Risk Management: Helps in managing and mitigating risks by ensuring that decision-making authority is aligned with the competence and expertise of individuals or teams, and promotes consistency in decision-making across the organization, as decisions are made based on established guidelines and within specified limits.
Enhanced Communication: Improves communication by clearly communicating the limits and boundaries of decision-making , preventing confusion and misunderstandings.
It’s a vital tool for Business Leaders and one of our recommended Business Governance tools.
Your Next Steps
If your business does not currently hold a Delegations of Authority, Contact Us to get started or book a Discovery Call, let’s design a smarter way for decisions to be made in your business.
AGILITY BUSINESS | Making business life easier from the first conversation
Disclaimer - This information is designed to be general business and employment information. You should seek professional advice that is based on your business circumstances prior to its use. Purchasing and/or utilising any of our templates, tools, agreements, documents does not constitute professional advice including legal advice.