We are delighted to share this new resource: “The delegation edge: A guide to successful delegation and authority,” reflecting the Society’s collaborative effort with EY. The report, which reveals the results of a benchmarking survey of Society public and private company members conducted in fall 2024, provides coveted benchmarking data on current delegation of authority (DOA) practices and practical guidance on developing and enhancing delegation policies and processes.
Among the key takeaways:
- The vast majority of companies (79%) have a formal and/or written DOA policy that describes approval thresholds and decision-making across the organization, while 11% have an informal policy. (n= 207)
- Most DOA policies consist of both a memo and matrix (54%) (n=176) and two-thirds include an introduction/summary section. (n=160)
- The majority of policies provide unique grants of authority by roles and apply across all functional departments: (n=153)
- DOAs commonly (65%) include signature authorities (i.e., identifying who in the organization is permitted to sign commercial documents, contracts, checks, and other material documents), which EY recommends for streamlining, risk mitigation, and accountability. (n=127)
- Responsibility for maintaining/updating the DOA policy most commonly lies within the Legal Department (73%). (n=147)
- The following identifies which decisions are most commonly retained solely at the board level (regardless of quantitative thresholds) (n=133) or delegated to management: (n=117):
- Most DOA policy thresholds for matters delegated to management and others within the organization correlate to the individual’s role in the organization’s hierarchical structure: (n=134)
- Companies typically provide access to their DOA policy via a centralized company portal or intranet (82%) (n=142); however, periodic training on DOA policy updates is uncommon (~35%) (n=145).
In addition to the inclusion of additional extensive benchmarking data, the report identifies the primary components of an effective DOA and key policy considerations; offers a structured approach to developing or refreshing a DOA; and shares other practice pointers throughout.
Members may contact Randi Morrison for survey data by company type and size.