Session 10 Delegations of Authority Presented by Andrew

Session 10: Delegations of Authority Presented by: • Andrew Cooke Pricewaterhouse. Coopers

whatwouldyouliketogrow. com. au Delegations of Authority ANZUIAG Conference 2010 What would you like to grow?

Setting the scene GFC Growth through better business decisions Risk culture Empowerment of staff Cut through the red tape Make people more accountable Pw. C 3 What would you like to grow?

Agenda Delegation of Authority What benefits can it bring A delegation decision model What are some common problems Key insights The USQ experience Questions Pw. C 4 What would you like to grow?

Delegation of Authority • Authority to make business decision Successful organisations exhibit characteristics of structural clarity through formal and informal accountabilities Informational accountabilities (Underpinned by leadership style, culture, trust, operating principle/values etc) • Support accountability and governance Formal accountabilities • Responsibility / accountability / authority Assigned to expertise with ability to act Congruent across multiple dimensions • Forms the basis of your decision escalation process Open and robust communication Constant learning and educating from failure • Single source of truth or guiding principles Pw. C Clearly defined and documented 5 What would you like to grow?

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 Pw. C 6 What would you like to grow?

A delegation decision model Descriptor Term Definition A Accountable Person or role who is ultimately accountable for the decision, who owns the outcome from the decision. An Accountable must signoff (Approve) on work that a Responsible provides R Responsible Person or role responsible for ensuring that an item is completed / a decision is made. There is typically one role with a participation type of Responsible I Informed Person or role that needs to kept informed of the status of the decision making process – usually one way communication on completion C Consulted Person or role whose subject matter expertise, knowledge, information or other input is required in order to make the decision Key decisions Policies and standards ty ori uth Governance processes fa Governance structures so on ati leg De Decision models Processes and procedure Organisation structure Pw. C Job description Skills and competencies 7 What would you like to grow?

What are some common problems • Complexity of Do. A and business processes • Misalignment of Do. A and business processes • Do. A 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 Pw. C 8 What would you like to grow?

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 Do. A is a single (central) prescriptive document for decision making and operational action • Areas typically cover Pw. C - Budgeted vs non-budgeted - Capital and operating expenditure - HR - Pricing - Contracts and supplier arrangements - Marketing 9 What would you like to grow?

Key insights Guiding Principles Single Source of Truth Length and structure Single overarching policy, 10 – 25 pages in length, more descriptive than numbers and tables Central repository linked to board and sub-delegation, highly detailed can exceed 100 pages. Hierarchy System of levels, stratums supported by decision analysis Solely based on role or position Ownership Finance or risk Finance or HR Other observation More prescriptive information in other policies Do. A tends to have necessary detail and is the primary tool Pw. C 10 What would you like to grow?

The USQ experience Strategy Selection Key decisions Risk / Fraud RACI Model ga le De Decision models IT Governance processes Policies and standards ty ori uth Governance structures fa so n tio Council and Mgt Cmttee’s ORMP Budget Facilities Code of Conduct Processes and procedure Access System workflow Organisation structure Align for reporting Pw. C Job description Contract 11 Skills and competencies Perf System What would you like to grow?

The USQ experience Pw. C 12 What would you like to grow?

The USQ experience Pw. C 13 What would you like to grow?

The USQ experience Pw. C 14 What would you like to grow?

Questions © 2010 Pricewaterhouse. Coopers. All rights reserved. In this document, “Pw. C” refers to Pricewaterhouse. Coopers, which is a member firm of Pricewaterhouse. Coopers International Limited, each member firm of which is a separate legal entity What would you like to grow?