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What is Delegation of authority?

Operations, IT, cybersecurity. A plain-English definition for Australian business owners.

A delegation of authority is the formal record of who in a business may commit it to what — who can approve spending at each level, sign contracts, hire staff or authorise payments — usually set out in a schedule or policy approved by the owner or board.

Without one, either everything routes through the owner (a bottleneck) or approvals happen informally (a control gap and a fraud risk). A written delegation of authority is what lets an owner step back without losing control, which is why it is central to reducing founder dependency.

In a connected back office this sits with the Operations hub, where Valont runs it support, cybersecurity and cloud systems for Australian SMEs as one team. The full definition set is on the glossary.

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General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.