3.2 Decision Rights and RACI: The Permission Matrix

Ambiguity in authority creates paralysis. When three people think they "own" a decision, the result is endless debate. When no one thinks they own it, the result is inaction.

To operate at speed, we treat Decision Rights like software permissions. Every major operational action has a hard-coded "Owner" (Write Access) and "Validator" (Read/Check Access).

The Golden Rule of Authority

Authority follows Responsibility.

If you are responsible for the outcome (the P&L, the quality metric, the deadline), you automatically hold the decision right on how to achieve it.

• The Test: If it breaks, who gets the phone call at 2 AM? That person decides.

The Decision Matrix

We segregate authority by Risk Class. These rights are absolute unless a specific Waiver is signed.

Category	Decision Trigger	Decision Owner (The "A")	Veto Authority
Financial	Expense < $1k	Team Lead	None
Financial	Expense > $10k / CapEx	Dept Head + CFO	CEO
Hiring	New Offer Letter	Hiring Manager	Bar Raiser (HR/Peer)
Quality	Stop Shipment / Line Stop	Quality Engineer	None (CEO cannot override Safety)
Commercial	Non-Standard Contract Terms	Sales Director	Legal / COO
Engineering	Architecture / Tech Stack	CTO / Chief Engineer	None
Supply Chain	New Vendor Approval	Procurement Head	Quality (if audit fails)

Critical Control: The Quality Veto

In manufacturing, the Quality Department holds the "Nuclear Key."

• The Rule: Operations owns the Schedule, but Quality owns the Release.
• Scenario: The VP of Sales wants to ship to hit a target. The Quality Engineer sees a 0.5% failure rate spike.
• The Outcome: The unit does not ship. Quality has absolute Veto power over Revenue when technical standards are violated.

The RACI Model (Simplified)

We use RACI to define roles for specific projects. However, most RACI charts fail because they are too complex. We use a simplified definition:

• R = Responsible (The Doer): The person doing the actual work (writing code, soldering, negotiating). Multiple Rs allowed.
• A = Accountable (The Owner): The single person whose neck is on the line. They have the final "Yes/No." Rule: There can only be ONE "A".
• C = Consulted (The Expert): People who provide input before the decision. They have influence, but no vote.
• I = Informed (The Broadcast): People told about the decision after it is made.

Common RACI Failures:

1. Too many "A"s: If two people are Accountable, no one is.
2. "C" as Veto: Consulted people provide data. They do not decide. If the "A" disagrees with the "C," the "A" decides and documents the risk.

Escalation Logic: Breaking Deadlocks

Disagreement is healthy; gridlock is expensive. When two functional heads (e.g., Ops vs. Eng) disagree, use this escalation path.

Level 1. The Data Fight

• Action: Both parties must produce a one-page data summary supporting their view.
• Rule: Data > Opinion. If one side has data and the other has a "feeling," the data wins immediately.

Level 2. The "Disagree and Commit"

• Action: If data is inconclusive, the "A" (Accountable Owner) makes the call.
• Rule: The dissenting party must fully support the execution. Sabotage or "I told you so" behavior is a performance violation.

Level 3. The CEO Tie-Breaker

• Action: Submit a Decision Memo (see below).
• Rule: Using the CEO as a referee is a failure of management alignment. Do this sparingly.

Artifact: The Decision Memo

Do not schedule a meeting to present a complex decision without a pre-read. Use this template to force clarity.

Format: 1 Page Max.

Header: [Decision Title] | [Date] | [Owner]

1. The Context:

• What is the problem? (1-2 sentences).

2. The Options:

• Option A: (Description + Cost + Risk).
• Option B: (Description + Cost + Risk).
• Option C: (Do Nothing - Always include this baseline).

3. The Recommendation:

• We propose Option A because [Data Point 1] and [Data Point 2].

4. The Dissent:

• Department X disagrees because [Reason]. We have mitigated this by [Action].

5. The Ask:

• [Approve / Reject / Discuss]

Final Checklist

Check	Requirement
The "One A" Rule	Every project/metric has exactly one Accountable person.
Quality Autonomy	Quality Dept can stop production without permission.
Meeting Rule	No decision meetings without a written Decision Memo.
Deadlock Breaker	In absence of data, the "A" decides.
Documentation	Major decisions are logged in the project tracker, not lost in Slack.