Core Tool

The Authority Matrix

A written document that defines who can decide what — by role, by amount, by type. The single most effective tool for removing the owner from decisions they don't need to make.

What It Is

Not a chart. A working document.

An authority matrix is a written, shared document that explicitly states who in the organization has the authority to make which decisions — and under what conditions. It's not an org chart. It's not a job description. It's a decision-routing system.

Most SMEs don't have one. Decisions get made based on habit, seniority, availability, and whoever happens to be in the room. This creates a system where everything defaults to the owner — not because the owner is the right person to decide, but because there's no clear alternative.

The authority matrix creates the clear alternative. It's built collaboratively with the team, it's specific to the business, and it's designed to be used — not filed.

Authority matrix being designed on a whiteboard during a consulting session

Example Structure

What an authority matrix covers.

This is a simplified example of the type of structure an authority matrix creates. Every matrix is built specifically for the business it serves.

Decision Type	Up to Threshold A	Up to Threshold B	Above Threshold B	Emergency Protocol
Supplier payments	Operations Manager	Ops + Finance	Owner required	Finance + notify owner
Staff overtime approval	Area Manager	Area Manager	HR Manager	Area Manager
Client discount authorization	Sales Lead	Sales Lead + Manager	Owner required	Sales Manager + notify
New supplier selection	Purchasing	Purchasing + Ops	Owner required	Ops + notify owner
Equipment repair / maintenance	Maintenance Lead	Maintenance + Ops	Owner required	Maintenance Lead
Hiring decisions	Area Manager	Area + HR	Owner required	N/A
Customer complaint resolution	Customer Service	CS + Sales Manager	Owner required	CS Manager

Illustrative example only. Actual thresholds and roles are defined specifically for each business.

Why It Works

Three reasons the matrix changes behavior.

It removes ambiguity

When nobody knows who should decide something, it goes to the owner by default. The matrix eliminates that default by making the answer explicit. The team doesn't need to ask — they already know.

It gives the team cover

Many second-line managers escalate decisions not because they can't decide — but because they're afraid of making a mistake without explicit permission. The matrix is that permission, written down and agreed upon.

It keeps the owner informed

The matrix doesn't hide decisions from the owner — it routes them appropriately and ensures the right ones surface through the reporting system. The owner sees what matters without being in the middle of everything.

Get Started

Building one for your business.

The authority matrix is built as part of our eight-week consulting program. It's not a template you fill out — it's a document we build together, with your team, for your specific context.

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