How to Build a Delegation of Authority Matrix: A Practical Step-by-Step Method

A DOA matrix is only “done” when it answers real questions for real people. The way to get there is not to start with a giant spreadsheet. Start with the decisions your business actually makes.

Step 1: Define the scope (so you don’t boil the ocean)

Decide what your first version will cover:

• Business units and geographies
• Legal entities (especially if you have multiple subsidiaries)
• Decision domains (finance, procurement, contracts, HR, IT, risk)
• What is in and out of scope for phase one

If you try to design every authority rule across the enterprise in one pass, it will never launch.

Step 2: Inventory decisions by “decision type,” not by department

The best matrices are organized around decision types, for example:

• Vendor onboarding and contract execution
• Purchase commitments (POs, SOWs, subscriptions)
• Invoice approvals and payment releases
• Discounts and write-offs
• Capital approvals and project change orders
• Policy exceptions and risk acceptance

Keep the list short at first. You can expand later.

Step 3: Define the authority levels that reflect how you operate

Authority levels should map to roles people recognize. A common approach is a tiered ladder (e.g., Manager -> Director -> VP -> CFO) plus reserved authorities (e.g., Board, CEO).

Two tips that save time:

• Use roles, not names. Names change constantly.
• Define what a role means (e.g., “VP, Finance for Region X”) so the mapping is unambiguous.

Step 4: Set thresholds that align with risk, not just dollars

Dollar limits are necessary, but they’re not sufficient. Many decisions need additional constraints:

• Time limits (temporary authority for coverage)
• Scope (specific entities, regions, cost centers)
• Counterparty or vendor risk (new vendor vs approved vendor)
• Contract terms (non-standard terms trigger legal review)
• Percentage thresholds (e.g., discount percent, budget variance percent)

This is where DOA becomes more than a spreadsheet.

Step 5: Build the matrix with “if this, then that” clarity

A matrix row should read like a rule someone can execute. Here’s a simplified example (mock data):

The matrix becomes far more usable when “conditions” are explicit.

Step 6: Design exceptions and escalation before you publish

People will need a path for edge cases. Decide upfront:

• Who can grant exceptions
• How exceptions are documented
• How long exceptions last
• Whether exceptions become permanent rules after review

Without this, exceptions turn into shadow processes.

Step 7: Validate with scenarios (not committee opinions)

Before rollout, run 10-15 real scenarios:

• A contract renewal with a price increase
• An urgent operational purchase
• A new vendor with non-standard terms
• A write-off request
• A temporary approval coverage situation

If the matrix can’t handle common scenarios cleanly, fix it now. This is the difference between adoption and avoidance.

Step 8: Roll out with an operating cadence

A DOA matrix is a living system. Put the cadence in writing:

• Event-based updates (role changes, re-orgs, new entities/accounts)
• Quarterly review (sampling and rationalization)
• Annual refresh (policy alignment and threshold recalibration)

Implementation checklist

• A clear owner (and a backup) for the matrix and related policies
• A defined workflow for changes (request -> review -> approve -> publish -> notify)
• A single place people can search and interpret the rules
• A version history you can rely on during audits
• A plan for integrating the matrix into the systems where approvals happen

Where Aptly fits

Aptly helps turn a DOA matrix into something teams can actually use: a searchable, governed system of record with tracked changes, tracked issuance, and audit-ready history. If you're integrating authority checks into ERP or procurement workflows, start with Single Source of Truth for Authority: Integrating HRIS, ERP, and Identity.