> For the complete documentation index, see [llms.txt](https://docs.naco.company/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.naco.company/employee-handbook/5.-how-we-decide.md).

# 5. How We Decide

<figure><img src="/files/W9Kbbyf3QLKh5O0SWw0Z" alt=""><figcaption></figcaption></figure>

Decisions are the raw material of a company. A company with good decisions, poorly executed, survives. A company with bad decisions, well executed, doesn't.

At NACO, decisions are made from the system, not from the person. The right question isn't "who decides?" It's "what does the framework say?"

***

### The Four Levels of Decision

**Level 01 — CEO**Strategic decisions for the group. Decisions involving partners. Structural changes to the business. Approval of major budgets. Definition of operational frameworks.

The CEO isn't the last resort. The CEO is the first point of contact in some categories.

**Level 02 — Area Heads**Operational decisions within their area. Hiring within their area. Budgets within the approved framework. Cross-area coordination.

The Head is sovereign within their area, within the framework.

**Level 03 — Outlet Managers and Operational Leads**Day-to-day operation of their outlet or function. Direct team management. Application of SOPs. Resolution of minor incidents.

The operational lead doesn't escalate every issue. They resolve within their framework. They escalate only what exceeds their scope.

**Level 04 — Team Members**Execution of their work. Decisions within their position's SOP.

A team member operates with autonomy within their role. They don't need authorization for every action already prescribed in their SOP.

***

### The Cross-Cutting Principle

Each level decides in its zone. Each level respects the other level's zone.

Whoever decides on something outside their scope violates the framework — even if the decision itself looks correct.

***

### Decisions That Are Never Made Without Alignment

Some decisions are never made without explicit alignment with the CEO — regardless of who identifies them:

1. **Senior hires** — Heads, key leaders, positions that impact structure.
2. **Major investments** — Any capital commitment that affects the quarterly budget.
3. **Changes to team structure** — Creation or elimination of positions, reorganization of areas.
4. **Decisions touching partners or strategic alliances.**
5. **Core product changes** — Structural changes to menu, concept, or identity of any brand.
6. **Legal or regulatory decisions** — Any legal, contractual, or compliance matter.
7. **Decisions without a clear owner** — When an issue crosses multiple areas and there's no designated owner, no decision gets made until the CEO assigns ownership.
8. **External brand communication** — Official messages, public statements, major PR actions.
9. **Expansion decisions** — Opening new outlets, launching new brands, entering new markets.

These nine categories share one thing: **the cost of getting it wrong is greater than the cost of waiting for alignment.**

***

### How Disagreements Get Resolved

**Vertical disagreement** (between different levels): Gets resolved directly between the two. If no agreement is reached, the higher level holds the final decision. The lower level can register their disagreement but executes. *Disagree and commit.*

**Lateral disagreement** (between peers at the same level): Gets resolved in the weekly Heads meeting, with everyone present. This neutralizes cultural asymmetries and allows the professional framework to operate above social hierarchy.

**Strategic disagreement** (direction, vision, priorities): Escalates directly to the CEO in the appropriate format.