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Decision Rights: Who Decides What (And How)

Speed up decisions without losing quality by designing clear decision rights for your product organization.

11 min readAxial TeamPublished: 2026-01-28

Decision-making is the currency of execution. Fast, quality decisions accelerate progress. Slow, unclear decisions create bottlenecks, frustration, and wasted effort. Yet most organizations have murky decision rights—unclear who can decide what.

Clear decision rights are a critical component of an effective product operating model. This article provides a framework for designing clear decision rights in product organizations, drawing on Melissa Perri's work on product governance and decision-making patterns from high-performing organizations.

Why Decision Rights Matter

Every product organization makes thousands of decisions: what to build, how to build it, when to ship, how to price, whom to hire. Decision quality and speed directly impact organizational effectiveness.

Signs of Broken Decision Rights
  • Escalation spiral: Every decision ends up with senior leadership
  • Committee hell: Multiple approvals required for simple changes
  • Decision vacuum: No one feels empowered to decide
  • Rogue actors: Some people decide unilaterally on things they shouldn't
  • Revisiting: Decisions get made, then questioned, then reversed

Clear decision rights solve these problems by specifying who decides, who inputs, and who gets informed.

The Type 1 / Type 2 Framework

Amazon popularized a useful distinction between decision types:

Type 1 Decisions: Irreversible and Consequential

Type 1 Decisions
One-way doors. Once made, you can't easily undo them. These deserve careful consideration, broad input, and senior oversight. Speed matters less than getting it right.
Type 1 Examples
  • Major architectural choices
  • Significant pricing changes
  • Sunsetting a product
  • Major partnerships or acquisitions
  • Core platform investments

Type 2 Decisions: Reversible

Type 2 Decisions
Two-way doors. If you get it wrong, you can correct course. These should be made quickly by the people closest to the work. Waiting for perfect information wastes time you could spend learning from real-world feedback.
Type 2 Examples
  • Feature implementation details
  • A/B test decisions
  • Process experiments
  • Most hiring decisions
  • UI/UX choices

This principle enables faster discovery and delivery cycles.

The Common Mistake

Most organizations treat Type 2 decisions like Type 1 decisions. Every change requires approval chains. Every experiment needs sign-off. Speed suffers. People feel disempowered.

The opposite mistake is less common but equally damaging: treating Type 1 decisions like Type 2 decisions. Making irreversible commitments without proper consideration creates costly mistakes.

The DACI Framework

DACI (sometimes RACI) provides structure for complex decisions:

DACI Framework
D - Driver: Responsible for making sure the decision happens. Gathers input, creates options, ensures process is followed.
A - Approver: The person who actually makes the call. There should be only one.
C - Contributors: People whose input is needed before deciding. Their opinion should be sought.
I - Informed: People who need to know about the decision after it's made.

Using DACI Effectively

For important decisions, explicitly document the DACI:

  • Who is driving this decision forward?
  • Who has final approval authority?
  • Whose input do we need?
  • Who needs to be informed once we decide?
The common failure: too many Approvers. If everyone has veto power, nothing gets decided. One approver. Many contributors. Clear accountability.

Decision Rights by Domain

A useful exercise: map decision rights across common decision domains.

Product Strategy Decisions

  • What markets to serve: Executive team decides; product leadership contributes
  • Product vision and strategy: CPO/VP Product decides; teams contribute
  • Quarterly objectives: Product leadership decides; teams propose

Product Roadmap Decisions

  • Which problems to solve: Product manager decides; design and engineering contribute
  • Prioritization within quarter: Product manager decides
  • Scope tradeoffs: Product manager decides; engineering contributes on feasibility

Solution Decisions

  • User experience approach: Designer decides; PM and engineering contribute
  • Technical architecture: Tech lead/engineering decides; PM contributes on constraints
  • Quality bar: Engineering decides; PM contributes on tradeoffs

Execution Decisions

  • Sprint planning: Team decides collectively
  • How to implement: Engineer doing the work decides
  • When to ship: Team decides; PM may have input on timing

Designing Decision Rights for Your Organization

Start with Friction Points

Where are decisions getting stuck? Where do escalations happen? These are signals that decision rights are unclear.

Map the Current State
  • Who actually makes these decisions today?
  • How long do they take?
  • How often are they revisited or overruled?

Define Desired State

For each decision type, specify:

  • Who should decide (the role, not the person)
  • What input is required before deciding
  • How the decision should be communicated
  • Under what conditions escalation is appropriate

Document and Socialize

Write down the decision rights. Share them broadly. Reference them when conflicts arise. Update them when they're not working.

Handle Exceptions Explicitly

Not every decision fits the standard model. Define how exceptions work:

  • When is escalation appropriate?
  • Who can override normal decision rights?
  • How are precedents documented?

Common Traps

Consensus Trap

Seeking consensus sounds democratic but creates paralysis. Everyone having a vote means no one has accountability. Aim for input, not agreement.

Shadow Decision Makers

Sometimes the formal decision rights don't match reality. The CEO "delegates" but actually approves everything. Document real decision rights, not aspirational ones.

Decision Avoidance

Sometimes people avoid decisions by endless research or by waiting for more information. Set decision deadlines. Imperfect decisions beat indecision.

Over-Specification

Defining decision rights for every possible situation creates bureaucracy. Focus on the decisions that matter most and that cause the most friction.

Speed Through Clarity

Clear decision rights don't slow organizations down—they speed them up. When people know they can decide, they decide. When they know who to ask, they ask quickly. When escalation paths are clear, escalation happens efficiently.

To improve decision-making in your organization:

  1. Classify decisions by type (reversible vs. irreversible)
  2. Push reversible decisions to the people doing the work
  3. Use DACI to clarify complex decisions
  4. Document decision rights for common friction points
  5. Revisit and refine as you learn what works

For more on organizational design for product, see our guide on Product Operating Models, The PM Mandate, or explore how we help companies clarify decision-making structures.

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