A decision rights matrix for outsourced work

Key takeaways

A decision rights matrix lists the recurring decisions in a process and, for each, who decides, who recommends and who is informed, with limits in numbers. For outsourced work, it shows exactly what the provider can decide alone, what needs your approval and how fast you will respond. It complements a RACI matrix, which covers tasks rather than decisions.

• List recurring decisions, not tasks.
• For each: who decides, recommends and is informed.
• Put limits in numbers, such as £ amounts or days.
• Add a response time for every decision you keep.

Why use a decision rights matrix?

Because most outsourcing friction comes from unclear decisions, not unclear tasks. A provider unsure whether it can approve a refund either asks about everything, which slows work, or decides too much, which loses control. A matrix answers the question once.

• Which business processes should you never outsource?
• RACI matrix for outsourcing: who does what, clearly

What does a decision rights matrix look like?

One row per decision, with clear limits. For example:

• Refund under the set limit: provider decides, manager informed weekly.
• Refund over the limit: provider recommends, manager decides same day.
• New supplier: provider recommends, director decides.
• Bank detail change: provider prepares, director decides after call-back.
• Public reply to a complaint: provider drafts, owner decides.

• Goodwill gestures and exceptions: who can say yes?
• Bank mandates and payment authority: keep the keys

How is it different from a RACI matrix?

A RACI matrix assigns who is responsible, accountable, consulted and informed for tasks. A decision rights matrix focuses on choices and their limits. Many SMEs use both: RACI for the workflow, decision rights for the moments that commit the business.

• Keep the decision, outsource the admin around it
• Approval bottlenecks: when sign-off holds up the work

How do you keep it current?

Review it quarterly in the first year and then yearly. Raise limits when the provider has proved reliable, lower them if errors appear, and add rows when new decisions come up.

• Review what you keep in-house once a year

What does this look like in practice?

A pattern we see: providers escalate everything in the first month because they are unsure. A one-page matrix with clear limits cuts escalations sharply and gets the right ones to the right person.

• See client work
• BPO Solutions for UK businesses

Decision rights checklist

• List the recurring decisions in the process.
• Assign decide, recommend and inform.
• Set limits in numbers.
• Add response times for kept decisions.
• Review quarterly in year one.

• Contract clauses that keep control with you
• Review what you keep in-house once a year

Next step

List the five decisions your provider asks you about most often. Write a limit for each, and you have the start of your matrix.