Approvals Matrix

This article was first published in February 2018 and was updated in November 2024.

A table that provides the business rules for routing an approval task through a business process based on preset conditions. An approval matrix ensures that the correct individuals with the appropriate approval authority are involved in decision-making at the appropriate time. Sometimes referred to as a “schedule of authority.”

What is an Approval Matrix and How Does it Work?

An approval matrix is a powerful decision-making tool designed to manage approval workflows within a business. It serves as a visual representation of the rules and hierarchies that dictate who has the authority to approve various projects and tasks. By clearly outlining these roles, an approval matrix ensures that all approvals follow established policies and standardized processes, making it indispensable for managing everything from transactions to complex projects.

The approval matrix operates on a straightforward principle: it uses an “if x then y” formula to establish clear regulations. These rules can vary based on factors such as the amount of a purchase, the type of project, or the specific stage of the process. By defining who is responsible for approving specific tasks and the corresponding timelines, businesses can streamline their approval processes, reduce confusion in task delegation, and ensure a smooth and efficient workflow.

Benefits of Using an Approval Matrix in Business

Implementing an approval matrix in your business can yield numerous benefits, including:

• Gain Clarity over Spending: By clearly outlining who is responsible for approving specific tasks and the associated timelines, an approval matrix provides transparency and control over business expenditures.

• Establish Accountability: Designating authority over different projects and tasks ensures that everyone knows their responsibilities, fostering a culture of accountability.

• Consistent Decision-Making: An approval matrix promotes uniformity in decision-making across various tasks and projects, ensuring that all actions align with company policies.

• Time Savings: Streamlining the approval process helps avoid delays and confusion, saving valuable time for all involved.

• Enable Efficient Workflow: By clearly defining approval responsibilities and timelines, an approval matrix facilitates a more efficient workflow.

• Avoid Confusion: Clearly designating who has authority over different projects and tasks helps prevent misunderstandings and ensures that the right people are involved at the right time.

Types of Approval Matrices

There are several types of approval matrices, each tailored to specific business needs:

• Purchase Approval Matrix: This type of approval workflow is based on the monetary value of purchases. It typically involves a hierarchical route of approval, starting from the Department Head and potentially moving up to the VP of Finance, depending on the purchase amount.

• Project Approval Matrix: Unlike hierarchical workflows, a project approval matrix often features a parallel process. Multiple decision-makers review a request simultaneously to reach a consensus, ensuring that all relevant perspectives are considered.

• Content Approval Matrix: This approval workflow ensures that stakeholders with the most expertise review the content an organization publishes. It outlines who should review the initial draft and who has the final say, ensuring high-quality and accurate content.

Approval Matrix Example

Let’s take a look at an example of where an approval matrix can be used. An expense request needs to be routed to the appropriate approver based on a variety of conditions like:

• Office Location

• Amount of Expense

• Type of Expense

• Month Submitted

• Cost Center Owner

An example of an approvals matrix based on dollar amount.

How Is an Approvals Matrix Used in Workflow Automation?

An Approvals Matrix can drive the assignment of requests and approvals in an automated process to provide the process engine with the logic to route information appropriately.

It can also be quickly changed/edited to reflect the changing nature of the organization, staff changes, new policies, etc. In complex approval processes, this speed can be critical to prevent mistakes and delays.

Overcoming Approval Bottlenecks

Approval bottlenecks can significantly slow down business processes, but they can be effectively managed with the right strategies. One of the most effective solutions is the use of automation tools to streamline the approval process. These tools can reduce the learning curve for new staff, enable faster approvals, and provide quicker responses to any disputes that arise.

Additionally, implementing customizable spending controls tailored to each employee’s needs can further expedite the approval process. By integrating automation tools into existing systems, businesses can enhance efficiency and minimize bottlenecks, ensuring a smoother and more responsive approval workflow.

How Do You Implement an Approval Matrix?

To back up a bit, depending on the nature of the approval chain or schedule of authority, a process may require several different logic steps. For instance, there may be a dollar amount rule (requests over $50k route differently) and then a geographic rule (specific states route differently) and finally a department rule (each department has a specific approver assigned).

While the example above shows a large table of approval logic, depending on the circumstance, you might use a combination of lookup tables and dynamic assigners and static rules to find the appropriate approver.

Or, based on your documented business requirements, you might just implement the approval routing using sets of rules at appropriate points in the process. This makes more sense when the matrix of approvals is fairly simple. Implementing a new approval matrix can significantly enhance organizational efficiency by improving visibility and collaboration, especially when integrated with automated tools.

Best Practices for Approval Matrix Management

To manage an approval matrix effectively, businesses should adhere to the following best practices:

• Clearly Define the Approval Process and Authority: Ensure that the approval process is well-documented and that everyone understands their roles and responsibilities.

• Establish a Clear Hierarchy of Approvers: Create a structured hierarchy to streamline the approval process and avoid confusion.

• Set Up a System for Tracking and Managing Approvals: Implement tools and systems to monitor the progress of approvals and ensure timely completion.

• Ensure Stakeholder Understanding: Make sure all stakeholders are aware of the approval process and their specific roles within it.

• Regularly Review and Update the Approval Matrix: Periodically assess and update the approval matrix to keep it relevant and effective in light of organizational changes.

By following these best practices, businesses can ensure that their approval matrix is a valuable tool for managing approval workflows and promoting efficient decision-making.

Nutrient Workflow Can Help

We’ve worked with hundreds of companies with a wide variety of approval processes and have built complex approval matrices that started in Excel and ended up in a custom logic table within our approval software. Interested in seeing how we can help you build an approval matrix as part of your approval process automation efforts?

We have a variety of resources to help you on your journey to an automated workflow. 

• Workflow Tools and eBooks

• Workflow Ideas Weekly eMail Newsletter

• Recorded Demonstration of our Workflow Automation Software

• Request a Live Demonstration