Businesses need structure in order to operate properly. This need for structure extends into nearly all aspects of an organization, including who holds the decision rights.
In your organization, it is necessary for the procedures behind how processes and projects are implemented to be clear and definitive. Choosing the appropriate owner of the decision rights can help make sure this occurs.
Overview: What is the decision rights owner?
A decision rights owner can be defined as the person put in charge of deciding on and documenting the instructions for the correct implementation of processes. They are given this role due to their expertise in the related subject matter.
3 benefits of a decision rights owner
There are some major benefits to having a decision rights owner that should not be overlooked:
1. A clear path
A decision rights owner provides a clear path for others to follow.
2. Defines decision rights
There are frequently too many people competing in an organization to determine the best way forward in a project. By having a decision rights owner in place, time waste is minimized and work can move forward more quickly.
3. Business alignment
Many companies lack the formality to establish clear business rights. Having a decision rights owner in place is a clear message to stockholders and other important personnel that an organization is operating at a higher level of business alignment than other organizations.
Why is a business rights owner important to understand?
Understanding the role of a decision rights owner is important for your business for the following reasons:
The right person for the job
If you are someone who has a part in deciding who the owner of the decision rights will be, it is important to understand just what they will be doing. Knowing how to perform a process is one thing. Being able to simplify a complicated process into instructions that are clear and easy to follow is a unique gift. Making sure that the right person is put in place to be able to do this is vitally important.
Making necessary changes
Having an understanding of the role of the decision rights owner is important when necessary changes need to be made in the instructions for a process. With a decision rights owner in place, you can know who to go to when this type of situation arises.
Working as a unit
Knowing the importance of a decision rights owner can help you and other team leaders avoid several issues in the implementation of a process before they occur. Selecting a decision rights owner early on can help ensure your team will properly work as a unit.
An industry example of a decision rights owner
In a mid-level shelving company, too many team leaders had equal bearing on how a process should be implemented. This wound up costing the company a great deal of valuable time in getting processes completed as well as knowing the set directions to follow. In order to cut down on waste, a single decision rights owner was named.
6 best practices when thinking about a decision rights owner
When choosing a decision rights owner for your organization, there are some key practices to consider:
1. Expertise
When thinking about selecting a decision rights owner, be sure to only consider people that have expertise on the subject matter at hand.
2. Projecting authority
Having a decision rights owner in place who projects an air of authority is important so that the decisions that are made are not constantly put into question.
3. Presenting information simply
As stated earlier, a decision rights owner that can present information in a clear and concise manner is necessary. Look for people for the position who are not only experts but who can successfully make difficult subjects easy to understand.
4. Fair and balanced
Also, think about picking someone for the position who is fair and balanced. There will be times when changes will likely be needed in instruction. Picking someone for the position who is level-headed for when this need should arise will be important.
5. Staying up-to-date
Having a decision rights owner that stays current with changes and innovations in the industry is important so that process instructions stay relevant and keep up with the times.
6. Being customer-centric
One of the most important aspects of an organization’s success is giving the customer what they want. In choosing the right decision rights owner, it is therefore important to pick a candidate that puts the needs and desires of the customer at the center of the decisions that are made.
Frequently Asked Questions (FAQ) about a decision rights owner
Can there be more than one decision rights owner in an organization?
If there are several decision rights owners and decisions are made as a group, an appropriate decision rights model should be established in order to properly specify how cross-functional decision-making will work.
Why do so many organizations insufficiently address decision rights ownership?
There are a few possible reasons for this. One possible explanation is that few organizations recognize the importance of decision-making ownership. Another possibility is that the complexity and size of a larger business can make untangling business practices difficult. The potential for resistance from executives can also play a factor.
What is a method that is suitable for helping establish decision rights ownership?
One tool that can be helpful is the RACI method. Team leaders can look at this framework to establish who is Responsible for the execution of work, Accountable for the outcomes of a decision, who should be Consulted, and who should be Informed.
Streamlining decisions with a decision rights owner
Having a decision rights owner in your business is a major step towards streamlining your operations. By having someone on board who solidifies the steps that are taken in your processes and projects, you have a competitive edge over other businesses in your industry.
