Decision Authority & Governance

Decision authority is explicitly defined and documented.

Operating agreement or bylaws specify who approves contracts over $10K, hiring decisions, and strategic pivots, not just "the board" but named roles with clear thresholds.

I can identify who has final authority for major decisions.

If asked right now who approves a $50K vendor contract, you can answer in five seconds without checking documents or asking someone.

When significant decisions are needed, your enterprise has a consistent process that determines who approves and how authority is exercised.

Red flag: "we had to move fast so I just approved it," or "nobody said I couldn't."

Governing documents are actively referenced when decisions are made.

When significant decisions occur, your enterprise references documented governance standards rather than relying on memory or assumption.

Authority does not shift informally under pressure.

Red flag: during tight deadlines or crises, different people start making decisions that would normally require formal approval.

Ownership and control are clearly separated.

You understand the difference between owning equity and having decision authority, and this is documented, not just understood verbally.

Decisions are documented at the time they are made.

Board resolutions, consent forms, or approval emails exist for major decisions made in the last 90 days, created when the decision was made, not reconstructed later.

Governance decisions are made in structured settings with recorded outcomes.

Strategic and operational decisions occur in scheduled forums with prepared agendas. Outcomes and next steps are documented after each meeting, not reconstructed from memory. Red flag: major decisions happen in hallway conversations, text threads, or last-minute calls with no record of what was decided or who authorized it.