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Session 10: Delegations of Authority. Presented by: Andrew Cooke PricewaterhouseCoopers. Delegations of Authority. ANZUIAG Conference 2010. Setting the scene. GFC Growth through better business decisions Risk culture Empowerment of staff Cut through the red tape
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Session 10: Delegations of Authority Presented by: • Andrew Cooke PricewaterhouseCoopers
Delegations of Authority ANZUIAG Conference 2010
Setting the scene GFC Growth through better business decisions Risk culture Empowerment of staff Cut through the red tape Make people more accountable 3
Agenda Delegation of Authority What benefits can it bring A delegation decision model What are some common problems Key insights The USQ experience Questions 4
Delegation of Authority Successful organisations exhibit characteristics of structural clarity through formal and informal accountabilities Informational accountabilities (Underpinned by leadership style, culture, trust, operating principle/values etc) Formal accountabilities Clearly definedand documented Assigned to expertisewith ability to act Congruent acrossmultiple dimensions Open and robustcommunication Constant learning andeducating from failure • Authority to make business decision • Support accountability and governance • Responsibility / accountability / authority • Forms the basis of your decision escalation process • Single source of truth or guiding principles 5
What benefits can it bring • Empowers employees • Provides or builds on your internal structure • Protects your assets from undue risks or liabilities • Provides alignment of resources to decision making • Embeds risk appetite and tolerance throughout your organisation • Provides greater clarity on what is truly important to your organisation 6
A delegation decision model Key decisions Decision models Governance processes Delegations of authority Policies and standards Governance structures Processes and procedure Job description Skills and competencies Organisation structure 7
What are some common problems • Complexity of DoA and business processes • Misalignment of DoA and business processes • DoA not aligned with organisational structure / decision making • Ineffective decision making structures • Lack of staff awareness and inappropriate training • Failure to enforce (e.g. code of conduct breach) • Poorly managed when staff in temporary roles 8
Key insights • Guiding Principle vs Single Source of Truth • Guiding Principle – high trust environment where levels of delegation are linked to accountabilities, tend to set parameters and are less prescriptive than a ‘single source of truth’3 • Single Source of Truth – the DoA is a single (central) prescriptive document for decision making and operational action • Areas typically cover • Budgeted vs non-budgeted • Capital and operating expenditure • HR • Pricing • Contracts and supplier arrangements • Marketing 9
Key insights 10
The USQ experience Strategy Selection Risk / Fraud RACI Model Key decisions IT Facilities Council and Mgt Cmttee’s Decision models Code of Conduct Governance processes Delegations of authority Policies and standards ORMP - Budget Governance structures Access Processes and procedure System workflow Job description Skills and competencies Organisation structure Align for reporting Contract Perf System 11
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