Ownership

target readers - strategic manager

By Carsten Knappe-Finger

How decision rights, practical experience and organisational trust determine whether management intentions become results

The gap between an assigned task and an owned result

Responsibility is one of the most frequently used words in management and one of the least precisely defined. An organisation chart assigns functions, a process map allocates activities and a meeting produces action points. Yet none of these instruments alone establishes whether somebody will take responsibility for the outcome. The difference becomes apparent when a problem crosses a departmental boundary.

Consider an engineering change that affects procurement, installation and the project forecast. Each function may complete its own task correctly while the overall consequences remain unresolved. Engineering releases the drawing, procurement updates the order and controlling records the cost. But who asks whether the change still makes sense for the project as a whole? Who ensures that the decision is communicated to those who must deliver it? Without an answer, activity can increase while effectiveness declines.

This is why Responsibility is the fifth dimension of POWER, alongside Purpose, Organisation, Wisdom and Execution. It is not an additional box at the end of a process. It links the other four dimensions to an identifiable commitment. Purpose explains what matters. Organisation makes cooperation possible. Wisdom brings experience and evidence into the decision. Execution turns decisions into work. Responsibility keeps attention on the consequences.

Ownership does not mean that a single person must personally perform every task. In complex industrial operations that would be impossible and counterproductive. It means that the result has a recognisable owner who can coordinate contributions, identify conflicts and escalate decisions that cannot be resolved locally. Effective ownership is therefore compatible with specialist expertise and distributed execution.

A common management mistake is to substitute control for responsibility. When progress slows, additional reporting requirements are introduced, approvals multiply and managers intervene in details. Sometimes these measures are necessary. Often, however, they conceal the more fundamental question: does the person expected to deliver the result have the information, authority and support required to do so? Accountability without room for action produces defensive behaviour, not better performance.

The reverse problem is just as damaging. Delegation without clear expectations may look empowering but leaves people uncertain about priorities and decision rights. Responsibility requires a sufficiently precise objective, an agreed boundary of authority and a mechanism for dealing with exceptions. The aim is not to eliminate uncertainty. It is to make uncertainty discussable before it becomes a surprise.

This matters especially at interfaces. Many organisations optimise the performance of departments and assume that the overall result will follow. It does not necessarily follow. Local measures can conflict: one function is rewarded for low purchasing prices, another for short delivery times and a third for technical reliability. The customer experiences the combined result, not the individual scorecards. Someone must be able to address these trade-offs openly.

Responsibility starts before a deviation

Responsibility is often confused with the obligation to explain an unfavourable result. In that form it arrives too late. Real responsibility begins when a person has the information, authority and opportunity to influence a decision. Asking somebody to own a result without giving them those conditions creates accountability on paper and frustration in practice.

In industrial project business, important decisions cross departmental boundaries. Engineering owns the technical solution, estimating the commercial assessment, and project execution the delivery work. The overall result belongs to none of those functions alone. When an assumption is left unresolved between them, a later search for the guilty department rarely reveals why the decision process failed. It may even encourage people to protect their local position rather than raise difficult questions early.

The practical management test is therefore not who can be blamed after a deviation, but when the organisation first had a reasonable opportunity to recognise it. What information was available? Who could have connected the technical and commercial consequences? Which decision was delayed or never made? These questions do not excuse poor performance. They make correction more likely because they distinguish an individual error from a weakness in cooperation or authority.

Leaders must make priorities intelligible and accept that a warning can be valuable even when it is inconvenient. An engineer who questions a quantity or a commercial specialist who challenges an optimistic assumption should not have to choose between professional judgement and loyalty to the proposal. A culture of responsibility rewards early clarity and expects follow-through, rather than treating every changed forecast as a personal failure.

The five POWER dimensions meet here. Purpose explains why the decision matters; Organisation makes the necessary exchange possible; Wisdom supplies experience and judgement; Execution turns the conclusion into action; Responsibility ensures that somebody can carry it through. I have often returned to the thought that responsibility motivates by itself when it is real. The word real is decisive.

Decision rights have economic consequences

A familiar weakness in large organisations is the distance between the person who recognises a problem and the person authorised to resolve it. The engineer sees that a technical assumption is no longer valid, the estimator can calculate the likely cost, and the project team understands the delivery consequences. Yet none of them may be entitled to make the necessary trade-off. The issue moves upward, sometimes through several levels, until the remaining options are narrower than they were when the problem was first identified. A company can have capable people and still make poor decisions because its decision rights do not follow the work.

This is why I distinguish responsibility from the assignment of tasks. A task tells someone what to deliver. Responsibility requires a clear understanding of the intended result, access to relevant information and authority within defined limits. It also requires a route for escalation when those limits are reached. Without these conditions, an organisation asks employees to own outcomes they cannot influence. The resulting frustration is then often interpreted as a problem of attitude, when the more useful question concerns organisational design.

Consider a proposed technical modification that improves operating performance but increases installation effort. Engineering can assess the performance benefit, estimating can quantify the additional cost, and sales can judge whether the customer will value the change. None of those assessments alone constitutes a business decision. The organisation needs to know who may approve the modification, which criteria govern the decision and when a wider commercial discussion is required. A decision right should make this interaction faster without allowing one function to impose consequences on another unnoticed.

Figure: Decision rights — from issue recognition to authorised action. Source: Author’s POWER book manuscript.

Decision rights

Authority, escalation and the cost of delay

The limits of local authority should therefore be explicit, but not so detailed that every judgement becomes an exception. Material financial exposure, contractual commitments and safety-critical questions naturally require particular safeguards. Within those boundaries, people closest to the facts should be able to act. Management must resist the temptation to take back a decision merely because the outcome is uncomfortable. Otherwise delegation exists in the organisation chart but not in daily practice.

POWER gives this question a practical structure. Purpose clarifies the overall objective against which alternatives should be judged. Organisation establishes who must be involved and who decides. Wisdom ensures that specialist knowledge reaches the decision. Execution turns agreement into action and follow-up. Responsibility means that the people concerned can explain both the decision and its consequences. The dimensions are useful precisely because a failure in any one of them can undermine the others.

Industrial organisations measure cost deviations carefully, but they rarely measure the cost of waiting for a decision. An unresolved interface can hold up engineering work, postpone a supplier commitment or force installation teams to plan around an assumption that everybody knows is doubtful. The eventual cost may appear under engineering hours, procurement variance or site productivity. The common cause—the time lost between recognition and decision—can remain invisible.

Not every quick decision is a good decision. The purpose is to distinguish decisions that need more evidence from decisions that are merely moving through the hierarchy. In the first case, management should define what information is missing, who will provide it and by when. In the second, it should ask why the organisation cannot decide at the level where the relevant knowledge already exists. A meeting without a decision is not necessarily wasted; a meeting that leaves the same question unowned usually is.

The economic effect of delay depends on the stage of the work. Before a proposal is submitted, the company may still adjust the technical solution, obtain clarification or change a contractual assumption. After the order has been accepted, the same question can become an obligation with little commercial flexibility. During execution, every additional week may create commitments that cannot easily be reversed. This is the connection between IKM and POWER: early recognition matters only when the organisation can turn recognition into a timely choice.

A practical decision record need not be elaborate. It should capture the issue, the alternatives considered, the important assumptions, the person authorised to decide and the point at which the decision must be revisited. The value is not documentation for its own sake. It is continuity. When people change roles or a project moves from proposal to execution, the reasoning should survive. Otherwise the next team may repeat the discussion or, worse, treat an earlier provisional judgement as an established fact.

The management question I would ask is simple: which important decisions are waiting today, what does waiting cost, and who can remove the obstacle? That question often reveals more about organisational effectiveness than another report on departmental performance.

What managers should delegate—and what they must still do

Delegation is often presented as the transfer of a task. In practice, a task can be assigned while every consequential decision remains with the manager. The employee is then expected to deliver a result but lacks the authority to select resources, negotiate priorities or resolve conflicts with other functions. This arrangement creates an appearance of responsibility without the means to exercise it. When the result is delayed, the employee is blamed for insufficient initiative; when an independent decision is taken, the same employee may be criticised for exceeding authority. Such contradictions are not individual performance problems. They are failures in the design of responsibility.

A meaningful delegation begins with the object of responsibility. What result is required, by when, and under which technical, financial and contractual boundaries? Which decisions can the person make independently, and which require consultation or approval? What information and resources are available? How will disagreements with other functions be resolved? These questions may appear elementary, yet they are frequently left unanswered because managers assume that organisational charts and job descriptions already provide sufficient clarity. They rarely do. Actual work crosses formal boundaries, especially in complex engineering and project environments.

Responsibility does not mean that a manager disappears after assigning a task. Support and follow-up remain leadership duties. The appropriate intensity depends on the experience of the person, the uncertainty of the work and the potential consequences of a wrong decision. A routine decision with limited downside can be delegated with broad freedom. A technically novel or contractually significant decision may require closer discussion and an explicit approval point. Applying the same control intensity to every matter wastes managerial capacity and signals mistrust. Applying no control where the risks are substantial is not empowerment but neglect.

The manager must also provide backing when a delegated decision produces reasonable but unpopular consequences. If a project manager has been authorised to challenge an unrealistic delivery commitment, senior management should not quietly reverse that challenge merely to avoid an uncomfortable customer conversation. If an engineer has been given responsibility for technical integrity, the organisation must not treat that responsibility as optional when a commercial deadline becomes pressing. Delegation becomes credible when authority survives the first difficult case. Employees learn the real rules from such moments, not from leadership presentations.

Shared work introduces another complication: several people may contribute to a result, but this does not mean that responsibility should become anonymous. A cross-functional decision needs participants with different knowledge, a clear decision owner and a record of the assumptions accepted. Consultation improves judgement; it must not become a method for distributing accountability so widely that nobody can explain the outcome. This is particularly important in bid approvals, design changes and project forecasts. A committee can provide scrutiny and advice, but it cannot substitute for a defined person or body authorised to decide.

The consequences of delegation must be assessed fairly. A manager should distinguish an error made within agreed authority and on the basis of reasonable information from a failure to observe explicit requirements. Otherwise every unsuccessful result will be interpreted retrospectively as evidence that the employee should have asked for permission. That produces dependence and slow decisions. The aim is not to remove accountability but to make it proportionate to the information, authority and circumstances available at the time. A responsible organisation learns from unsuccessful decisions without pretending that every outcome could have been known in advance.

Delegation also develops capability. People acquire judgement by making decisions, seeing consequences and receiving specific feedback. If experienced managers retain every difficult choice, their teams may become efficient at preparation but weak at responsibility. The organisation then depends increasingly on a small number of decision-makers and becomes vulnerable when they are absent. Good leadership deliberately creates opportunities for others to decide within appropriate boundaries. In POWER terms, Organisation provides the decision architecture, Wisdom supports judgement, Execution tests the decision in practice and Responsibility keeps ownership clear. Purpose explains why the result matters.

Responsibility at organisational boundaries

Good leadership supports this form of responsibility through questions rather than permanent intervention. What result are we trying to achieve? What assumptions could prevent it? Who needs to be involved? What decision must be made now? What will tell us early enough that our approach is failing? Such questions encourage people to think beyond the completion of their assigned tasks.

The cultural dimension is important, but culture cannot be commanded into existence through slogans. People learn whether responsibility is welcome by observing how managers react to unwelcome information. If early warnings are punished, risks will be reported late. If a responsible challenge to an unrealistic plan is treated as obstruction, apparent agreement will replace genuine commitment. The organisation then becomes excellent at presenting certainty and poor at dealing with reality.

Responsibility, understood this way, is not simply a personal virtue. It is a design principle for organisational performance. The task of management is to create the conditions in which capable people can take ownership of meaningful outcomes and act before problems harden into facts.

An assignment can be formally clear and practically ineffective. A person may be responsible for preparing a report but have no authority to resolve the problem it describes. Another may be accountable for a cost target while the decisions driving that cost are made elsewhere. This is why responsibility should be examined together with decision rights, information and the ability to involve other functions. When those conditions do not fit, management creates an expectation of ownership without providing the means to exercise it.

A useful example is an unresolved interface between engineering and procurement. Engineering may believe that procurement will clarify the supplier’s scope. Procurement may assume that the technical specification already defines it. Both departments can report that their assigned activities are progressing. The interface remains open until it causes a delay or an additional cost. Naming a responsible person is helpful only if that person is expected to bring the relevant parties together, establish the required decision and follow the issue until it is closed. Responsibility must extend across the gap.

There is a difference between accepting responsibility and accepting blame. If employees expect every early warning to be treated as evidence of personal failure, they will become cautious about raising concerns. A sound management system asks whether the information was available, whether the decision was reasonable and whether corrective action followed when conditions changed. It does not excuse poor work. It distinguishes the quality of a decision from the fact that industrial reality can develop differently from expectations.

Learning and the courage to raise a warning

The principle is particularly important for productivity initiatives. A measure may be approved on the basis of an expected economic benefit, but approval is not the result. Somebody must ensure that the change is implemented, that affected functions cooperate and that the effect is checked. Without that ownership, a programme can accumulate attractive estimates while the business continues to operate much as before. Responsibility connects the idea to the result.

I do not see responsibility as a reason for more managerial intervention. Constantly taking decisions away from employees can weaken the very ownership that management wants to encourage. The better approach is to establish the boundaries within which people can act, make escalation straightforward when necessary and expect clear explanations of outcomes. Responsibility then becomes a source of initiative rather than another layer of control.

Knowledge management is often presented as a matter of storing lessons learned. Industrial organisations can build extensive archives and still repeat the same avoidable mistakes. The difficulty is not necessarily that the information is missing. It is that the information does not reach the next decision in a form that someone can use. A project report may explain an installation problem in detail while the next proposal team works with an estimating standard that has never been changed.

For me, the test of organisational wisdom is therefore whether experience changes the questions asked before the next commitment. If an installation quantity proved unrealistic, the useful lesson is not simply that the project exceeded its allowance. The organisation should understand which assumption failed, which evidence was available at the time and how a future quantity review can expose the same weakness earlier. This converts a retrospective explanation into a practical improvement of the estimating process.

The POWER connection

Most organisations can describe their structure precisely. They know which department owns engineering, purchasing, sales, operations or controlling. Responsibilities appear in organisation charts, process descriptions and approval rules. Yet the existence of a clear chart does not tell us how well work moves between those departments. The expensive problems often arise not inside a function but at the point where one function depends on another.

A departmental view is understandable. Managers need defined responsibilities, specialist knowledge and measurable objectives. The difficulty begins when each unit optimises its own work without seeing the consequences for the whole process. Engineering may consider a technical package complete because the design is approved. Procurement may still be waiting for specifications that permit reliable supplier quotations. Estimating may use a provisional quantity as though it were final. Project execution may discover that a customer interface was never fully resolved. Nobody has necessarily performed their own task carelessly. The organisation has failed to connect the tasks.

This is why I regard organisational boundaries as a productivity issue rather than merely a matter of cooperation or culture. Every unresolved interface can create waiting time, repeated work, clarification loops and decisions made on outdated information. Such costs are rarely booked under a heading called “organisational friction”. They appear instead as engineering rework, expedited purchasing, overtime, additional coordination and declining project margins. Because the consequences are scattered across cost centres, their common cause remains easy to overlook.

About the Author

Carsten Knappe-FingerCarsten Knappe-Finger is a German business administration graduate and Six Sigma Black Belt with more than 30 years of experience in major industrial organisations. His professional responsibilities included estimating, proposal and project management, engineering-related commercial functions, process management and productivity improvement. The POWER, IKM and PUMA–BOOST approaches draw on this industrial experience.

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