Understanding Decision Rights: Definition and Commercial Context
The defined authority to make, approve, escalate or review particular decisions within an organisation.
In commercial practice, decision rights should be understood in relation to the organisation's wider operating environment rather than as an isolated tool or departmental activity. The precise application depends on the business model, organisational complexity and the responsibilities assigned to different teams.
For example, an organisation reviewing decision rights should identify the responsible roles, the relevant processes and information, the decisions being made, and the evidence used to judge whether the arrangement works as intended.
Commercial Architecture examines strategy, people, process, technology, data and governance together. Decision Rights should be considered in the context of those interdependencies and the revenue-system capabilities it influences. Governance of one capability alone does not establish that an organisation has a fully Governed Revenue System.
The term may also be used differently in other professional disciplines; context should be made explicit.
In commercial practice, decision rights should be understood in relation to the organisation's wider operating environment rather than as an isolated tool or departmental activity. The precise application depends on the business model, organisational complexity and the responsibilities assigned to different teams.
For example, an organisation reviewing decision rights should identify the responsible roles, the relevant processes and information, the decisions being made, and the evidence used to judge whether the arrangement works as intended.
Commercial Architecture examines strategy, people, process, technology, data and governance together. Decision Rights should be considered in the context of those interdependencies and the revenue-system capabilities it influences. Governance of one capability alone does not establish that an organisation has a fully Governed Revenue System.
The term may also be used differently in other professional disciplines; context should be made explicit.
Related terminology
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