Duroshox · Strategy / Finance / Transformation
MD Office Transformation & Decision Architecture
Reducing leadership approval volume while preserving financial review.
Executive summary
From 2,600+ to fewer than 200 annual MD approvals, with 70–75% of procurement value still under leadership review.
Context
The MD reviewed more than 2,600 purchase orders annually. The intervention needed to address approval volume without equating fewer approvals with less governance.
Problem
Reduce the MD’s purchase-order approval load without sacrificing oversight of procurement value.
My role
I redesigned the PO approval framework as part of my MD Office transformation work.
Approach
- Mapped PO count against procurement value by band.
- Evaluated approval by value band, category and vendor risk.
- Built a value-band approval framework and aligned the MD and senior leadership team.
- Backed the rollout with a 30-day no-issue guarantee.
- Delegated approximately 80% of POs to relevant stakeholders.
Challenge & how I handled it
The MD and senior leadership team had to agree to give up approving most purchase orders—a big shift in control.
I built a robust, value-band approval framework that kept 70–75% of procurement value under leadership review, and backed it with a 30-day no-issue guarantee. The rollout ran with no issues and the new framework stayed.
Artefact
Value-band approval matrix
| PO value band | Approver | Share of POs | Share of value |
|---|---|---|---|
| Up to ₹1L | Department head | 55% | 5% |
| ₹1L–10L | Function head | 25% | 10% |
| ₹10L–50L | CFO | 13% | 15% |
| Above ₹50L | MD | 7% | 70% |
Annual MD approvals
Outcome
Approximately 80% of POs delegated. Annual MD approvals cut from 2,600+ to under 200, with 70–75% of procurement value still under leadership review.
Tools used
- Excel
- Process mapping
- Stakeholder management