Decisions Made At The Point Of Responsibility
The organisation makes each decision as close as possible to the team responsible for its implementation. This is in contrast to traditional, hierarchical organisations where decisions are escalated to the point of accountability. Accountability normally rests higher in the organisation than responsibility. Making decisions at too high a level forms a decision making bottleneck - a constraint on the organisation’s ability to move forward or to pivot.
Considerations
Organisations need to be able to make decisions quickly so that they can maintain their rate of delivery, maintain quality of service and so that they can pivot quickly. A strong leadership culture encourages decisions to be made at the point where full responsibility for implementing the decision is found. Making decisions in this way demonstrates the high level of trust and team autonomy that is a feature of leadership-based organisations.
In contrast, management focused organisations typically find decisions being escalated to the point where full accountability for the outcome of the decision is found. Escalation is both inefficient and ineffective. It is inefficient because of the cost of delay involved in making the escalation and in obtaining a response. It is ineffective because we need to provide sufficient context so that the accountable person can make the decision.
We make decisions at the lowest point of responsibility not the highest point of accountability
The lowest point of responsibility is defined as the team or group of teams that will be wholly responsible for the implementation of the decision. Where multiple teams are engaged, they collaborate to choose the most effective way to make the decision.
Even in a leadership-centred organisation, some decisions will require higher levels of authority than the responsible team can provide. The organisation provides simple, clear guidance about which decisions require higher authority, in which context and who is able to provide the necessary authority.
Teams respond to the autonomy fostered by the organisation by being transparent about the decisions they have made and the rationale for each. They openly share the data used to support the decisions that have been made. Teams are open about the outcomes of the work to implement their decisions as they are about all other work.
Levels
Green
Decisions Routinely Made By Responsible Teams
Decisions are routinely made at the lowest point of responsibility within the organisation.
The organisation provides simple, clear guidance about which decisions need the involvement of higher levels of authority. The guidance is used consistently by teams. Decisions requiring higher authority are escalated appropriately.
When the team lacks the evidence to make a sound decision they plan work to gather additional evidence. Experimentation is used where appropriate to support decision making activities.
Teams are transparent about the decisions they have made and the rationale used for each.
Amber
Decisions Inconsistently Made By Responsible Teams
Decisions are sometimes made at the lowest point of responsibility within the organisation. Some teams decide to escalate decisions without a clear rationale for doing so.
The organisation provides guidelines about which decisions need the involvement of higher levels of authority. The guidance is not used consistently by teams. Decisions are not always escalated appropriately.
Decisions are not always based on objective evidence. Experimentation is used inconsistently to support decision making.
Teams sometimes lack transparency about the decisions they have made.
Red
Decisions Routinely Escalated Inappropriatley By Teams
Teams escalate most of their decisions even when decisions obviously lie within their competence.
Guidelines about decision making and levels of authority are not provided. Decisions are often made at inappropriate levels of authority.
Decisions are often made subjectively without objective evidence.
It is hard to understand which decisions have been made and who has been involved in the decision making process.