Project Authority Matrix Template – Free Word Download
Introduction to the Project Authority Matrix
One of the most frequent sources of friction in project management is the ambiguity surrounding “sign-off.” Who actually has the power to approve a purchase order? Who can sign off on a requirements document? Who can authorize overtime? In many organizations, these answers are hidden in obscure policy documents or rely on “tribal knowledge.” The Project Authority Matrix (PAM) is the document that brings all these permissions into a single, accessible view.
While the RACI model (which we will cover in a later template) focuses on process and deliverables (who does the work), the Authority Matrix focuses on permission and governance (who allows the work to proceed). It is primarily a control document. It protects the organization from unauthorized spending and protects the project manager from acting beyond their jurisdiction.
This template is designed to help you create a robust Authority Matrix that covers Financial, Technical, Operational, and Commercial domains. By completing this document, you effectively immunize your project against the “I didn’t know you approved that” conversation. It creates a clear audit trail and ensures that every signature on a document has the requisite weight behind it.
The guidance below will walk you through categorizing decisions, setting financial limits, and defining the specific “Delegation of Authority” (DoA) rules that apply to your specific project environment.
Section 1: Governance Principles
1.1 The Concept of Delegated Authority
Before filling in the matrix, you must articulate the principles upon which authority is granted. In most corporate structures, all authority ultimately rests with the Board of Directors or the CEO. It is then “delegated” downwards. This section acknowledges that flow.
Guidance for Completion:
You should state clearly that this document supersedes any verbal instructions. If a manager says “go ahead” but the matrix says they don’t have the authority, the matrix wins. This is crucial for compliance.
Drafting Text:
“Authority in this project is derived from the approved Project Charter and the organizational Delegation of Authority (DoA) policy. This matrix defines the specific limits of autonomy granted to project roles. Any action taken outside the bounds of this matrix is considered unauthorized and may be subject to disciplinary review or reversal. Where this matrix conflicts with enterprise-wide financial controls, the enterprise controls take precedence.”
1.2 Types of Authority
Authority is not monolithic. You need to distinguish between different types of “approval.” A Technical Lead might have the authority to approve a design, but not the cost of implementing that design.
Define these distinct types in your document:
- Financial Authority: The power to commit company funds (e.g., signing a Purchase Order).
- Technical Authority: The power to accept a deliverable as meeting quality standards (e.g., signing off UAT).
- Administrative Authority: The power to approve operational items (e.g., leave requests, timesheets).
- Contractual Authority: The power to legally bind the company to a third party.
Tip: Be very careful with Contractual Authority. Usually, only specific directors or legal representatives can sign contracts. A Project Manager almost never has this power, even if they have the budget.
Section 2: Financial Authority Thresholds
2.1 Developing the Financial Tiers
This is the section that the Finance department cares about most. You need to create a clear tier system that dictates how much money each role can spend without seeking higher approval.
Step-by-Step Instructions:
- Identify the Roles: List the Project Manager, Workstream Leads, Project Sponsor, and Steering Committee.
- Identify the Transaction Types: Are we talking about internal resource costs? External software licenses? Travel expenses?
- Set the Limits: Define the monetary cap for each.
Example Structure:
Role: Project Manager
- Capital Expenditure (CapEx): $0 (Must be approved by Sponsor)
- Operational Expenditure (OpEx): Up to $5,000 per single transaction.
- Travel & Expenses: Approval of team expenses up to $500 per claim.
- Invoice Approval: Up to $10,000 (provided a Purchase Order exists).
Role: Project Sponsor
- Capital Expenditure: Up to $50,000.
- Operational Expenditure: Up to $20,000.
- Contract Signing: Not authorized (Must go to Procurement).
Guidance:
Be explicit about “splitting orders.” A common trick is to split a $10,000 order into two $5,000 orders to stay under a limit. You must include a clause forbidding this.
“Artificial decomposition of orders to bypass approval thresholds (order splitting) is strictly prohibited.”
2.2 Budget Variance Authority
This is different from spending money; this is about moving money. If the project is $1 million, can the PM move $100k from “Hardware” to “Software”?
Drafting the Rule:
“The Project Manager is authorized to reallocate budget between existing cost centers (virement) up to a value of 10% of the destination cost center’s total. Reallocations exceeding this amount require Sponsor approval. No funds may be moved from ‘Contingency’ without explicit Steering Committee approval.”
Section 3: Technical and Scope Authority
3.1 Design and Requirements Approval
Who decides that the blueprint is correct? This is critical to prevent “scope creep” and endless rework. You must define who has the final say on the “What.”
The Hierarchy of Design Authority:
- Solution Architect: Approves that the technical design meets enterprise standards.
- Business Analyst Lead: Approves that the requirements document accurately reflects business needs.
- Senior User: Approves that the proposed solution is usable.
The Matrix Entry:
Create a row for “Requirements Sign-Off.”
- Drafted by: Business Analyst.
- Reviewed by: Project Manager.
- Approved by: Senior User (Accountable).
- Veto Right: Solution Architect (if it violates technical standards).
Tip: Introduce the concept of a “Veto.” Some roles (like Security or Architecture) might not need to approve every detail, but they need the power to block a decision that creates risk.
3.2 Change Control Authority
This section links closely with your Change Management Plan. It defines who can say “Yes” to a change request (CR).
Example Table:
- Low Impact CR (< 10 hours effort): Project Manager.
- Medium Impact CR (10–50 hours effort): Change Control Board (CCB).
- High Impact CR (> 50 hours or critical path impact): Steering Committee.
Guidance:
Make sure to specify that “Scope” authority is separate from “Cost” authority. A user might approve a change in scope, but if it costs extra money, the Sponsor must also approve the funding. Both signatures are required.
Section 4: Human Resources and Administrative Authority
4.1 Resource Management
Who can hire and fire? Who approves vacation? In a matrix organization (where team members report to a functional manager, not the PM), this is a minefield.
Clarifying the Matrix Line:
- Recruitment: The Functional Manager usually hires. The PM might only “request” a resource.
- Task Assignment: The PM has the authority to assign daily tasks.
- Leave Approval: Usually requires dual approval (PM + Functional Manager) to ensure project coverage.
- Performance Review: The PM provides input; the Functional Manager writes the review.
Drafting Text:
“The Project Manager has the authority to direct the daily work of assigned resources. However, the Project Manager does not have the authority to alter the employment terms, salary, or HR status of any team member. Disciplinary issues must be referred to the team member’s Line Manager.”
4.2 External Contractor Management
If you have vendors, contractors, or freelancers, the rules are stricter due to labor laws (e.g., IR35 in the UK or 1099 rules in the US).
Authority Rule:
“The Project Manager may approve timesheets for contractors verifying hours worked. However, the Project Manager may not negotiate rate changes or contract extensions. All contract modifications must be processed through the Vendor Management Office (VMO).”
Section 5: Commercial and Procurement Authority
5.1 Vendor Selection
Who chooses the supplier? The PM might want Vendor A, but Procurement wants Vendor B.
The Selection Committee:
Establish a rule that for contracts over a certain value (e.g., $50k), a selection panel must be formed.
- Role of PM: Defines the Statement of Work (SOW).
- Role of Procurement: Manages the RFP process and commercial negotiation.
- Role of Sponsor: Final selection based on the panel’s recommendation.
Key Distinction:
The Project Manager defines what to buy. Procurement defines how to buy it. This separation of duties prevents fraud.
5.2 Contract Signature
This is the most dangerous area. A signature on a contract binds the legal entity.
Strict Warning:
“Under no circumstances does the Project Manager or any project team member have the authority to sign a legal contract, Non-Disclosure Agreement (NDA), or Master Services Agreement (MSA). All such documents must be signed by an Authorized Signatory as defined in the corporate governance registry.”
Section 6: The Authority Matrix Visualizer
6.1 Creating the Grid
Text descriptions are good, but a grid is better for quick reference. This section of your template should provide a blank grid for the user to populate.
Columns to Include:
- Decision / Action Item
- Project Manager
- Solution Architect
- Project Sponsor
- Steering Committee
- Procurement / Legal
Rows (Categories):
- Financial: Approve Invoice, Approve Budget Transfer, Authorize Overtime.
- Scope: Approve Requirements, Approve Change Request (Low/Med/High).
- Schedule: Approve Baseline, Approve 2-week slip, Approve Go-Live.
- Vendor: Select Vendor, Sign Contract, Terminate Contract.
- Quality: Approve Test Strategy, Sign-off UAT, Accept Final Deliverable.
Legend for the Grid:
- A: Approver (The one who signs).
- R: Recommender (The one who analyzes and proposes).
- C: Consulted (Must be asked before decision).
- I: Informed (Told after the decision).
Note: This looks like RACI, but the focus here is strictly on the Approver (A). In an Authority Matrix, usually only one person can hold the “A.”
Section 7: Delegation and Deputies
7.1 Temporary Delegation
What happens when the Sponsor goes on vacation? Does the project stop? You must outline the process for temporary delegation.
The Delegation Process:
- Written Notice: The authority holder must send an email or memo explicitly naming the delegate.
- Duration: The notice must state the start and end date.
- Limitations: Are there things the delegate cannot do? (e.g., “Bob can approve invoices, but he cannot approve scope changes”).
Drafting Text:
“Authority can be delegated temporarily for periods of absence. This delegation must be documented in writing and stored in the project repository. Retrospective delegation (approving something after the fact) is not permitted.”
7.2 Permanent Delegation
Can the Sponsor say, “I’m too busy, PM you just sign everything”?
Guidance:
No. You must explicitly forbid “blanket delegation.”
“Permanent delegation of accountability is not permitted. While administrative tasks can be delegated, the accountability for the decision remains with the role defined in this matrix.”
Section 8: Audit and Controls
8.1 The Audit Trail
Authority is useless without proof. How do we prove who signed what?
Digital Signatures vs. Email:
Define what constitutes a valid signature.
- Preferred: Digital Signature (e.g., DocuSign).
- Acceptable: Email approval from the user’s corporate account with clear language (“I approve this”).
- Unacceptable: Verbal approval or chat messages (Slack/Teams).
Drafting Instruction:
“All approvals defined in this matrix must be preserved in the project audit trail. For email approvals, the Project Manager must save the email as a PDF in the project folder. The email must explicitly reference the version of the document being approved.”
8.2 Review Cycle
Organizational policies change. The matrix needs to be checked.
Guidance:
“The Project Authority Matrix will be reviewed quarterly by the Project Management Office (PMO) to ensure it remains aligned with wider corporate governance policies.”
Conclusion – Project Authority Matrix Template – Free Word Download
The Project Authority Matrix is the definitive “Rule Book” for decision-making rights. It eliminates the guesswork that often slows down project execution. By completing this template, you are establishing a clear boundary of empowerment for yourself and your team.
For the Project Manager, this document is a shield. It allows you to confidently say “No” to requests that you are not authorized to grant, and it gives you the confidence to say “Yes” to actions within your remit without looking over your shoulder.
However, a matrix is only as good as the adherence to it. If you bypass the matrix “just this once” to get things done quickly, you undermine the entire governance structure. Use this document as a constant reference. Print the summary grid and pin it to the wall or keep it at the front of your digital notebook. When a decision is needed, consult the matrix first. This discipline ensures that your project remains compliant, controlled, and auditable from initiation to closure.
Finally, remember that authority comes with accountability. If the matrix grants you the power to spend money or approve scope, you must be prepared to justify those decisions. Ensure that every exercise of authority is backed by data and sound judgment.
Meta Description:
A detailed Project Authority Matrix template helping teams define financial limits, sign-off powers, and decision rights to ensure compliance and prevent unauthorized scope or budget changes.
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