Scott Foster
Founder & CEO, Shape Executive · 5 Mar 2026
If you want to quantify where decision accountability is unclear, use the Diagnose execution gaps.
Most leadership teams underestimate this because they don't measure it properly. You can run this diagnostic in 2 minutes using the Diagnose execution gaps.
Autonomy doesn't survive on trust alone — it survives on clarity. When decision rights are unclear, the organisation defaults to one of two failure modes: everything escalates upward, or nothing does. Both are expensive. The first creates a bottleneck at the top of the organisation and disengages the leaders who should be making decisions locally. The second creates invisible risk.
What Decision Rights Actually Are
Decision rights are not an org chart. They are not a policy document. They are a specific, explicit answer to the question: who can decide what, under what conditions, and when must they escalate? In most businesses, this question has never been answered clearly. There is a general sense of hierarchy — the branch manager decides operational matters, the regional manager decides commercial matters. But the boundaries are fuzzy, the thresholds are undefined, and the escalation pathways are unclear.
The Three Categories of Decision
Local decisions are made independently by the site or division leader, within defined parameters. No escalation required. Examples: customer credit within approved limits, staffing decisions within headcount budget, pricing within the approved floor.
Shared decisions require local action but with notification or consultation. The site leader acts, but keeps regional or enterprise leadership informed. Examples: pricing exceptions above a defined threshold, new customer accounts above a certain credit limit.
Enterprise decisions require escalation before action, regardless of urgency or local conviction. Examples: pricing below the enterprise floor, headcount additions outside budget, contracts above a defined value.
The specific thresholds will vary by business. The principle — three categories, explicit parameters, clear escalation — applies universally.
Escalation Design
Decision rights without escalation design are incomplete. The escalation pathway needs to be as clear as the decision right itself — who receives the escalation, what information they need to decide, and what the expected response time is. In most businesses, escalation pathways are vague, creating delays, inconsistency, and — eventually — the learned behaviour of not escalating at all.
Making It Work in Practice
The most important element of a decision rights framework is not its design — it is its consistency. Decision rights that are applied selectively, or overridden by senior leaders when they disagree with the outcome, erode faster than they were built. When the CEO makes a decision that belongs to the branch manager, they are not helping — they are signalling that the framework doesn't really apply. Clarity, consistency, and restraint. These are the disciplines that make decision rights work.