Authorization thresholds for handlers.
The single sentence that turns 'delegated in theory' into 'delegated in practice': 'Under $X, just authorize. Over, call me.' Here's how to set the threshold correctly, by industry.
The single sentence that turns 'delegated in theory' into 'delegated in practice': 'Under $X, just authorize. Over, call me.' Here's how to set the threshold correctly, by industry.
Authorization thresholds work when they're (1) specific enough to be unambiguous ('under $500 dollar amount,' not 'small expenses'), (2) high enough to actually delegate (most owners set them too low), (3) communicated in writing so handlers can refer back, (4) reviewed quarterly. Most industries have natural threshold ranges based on typical service costs.
Without an authorization threshold, every decision routes back to you — even the obvious ones. Set a threshold and handlers can act on the obvious decisions independently, escalating only the genuinely judgment-required ones.
Most owners set thresholds too low. A $200 threshold means every $250 plumbing call routes back to the owner. The whole point of the threshold is reducing this kind of routine escalation.
$300-$1,000 per emergency category. Plumbing/HVAC tend to higher; pest/lockout tend to lower.
$500-$2,500 depending on trade. Material costs drive higher thresholds.
Routine procedural matters: full authority. Settlement amounts: typically owner-only.
Treatment within established protocol: full authority. Treatment outside protocol: owner consult.
Routine bill-pay under $1,000: full authority. Above: owner approval.
'Authorization threshold: up to $1,500 per dispatch, you have full authority to handle. Above $1,500, please text me with the situation and proposed scope before proceeding. For genuine life-safety emergencies, just handle and notify me when stable. Document with photos and itemized invoice.'
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