Decision Chain
A decision chain is the sequence of people and steps through which an investment decision moves from initial screening to final approval.
Allocator relevance: Predicts decision velocity and reveals who must be aligned for an allocation to happen.
Expanded Definition
Decision chains capture workflow reality: who screens inbound, who runs diligence, who writes the IC memo, who signs, and who can veto. In allocators, this chain may be formal (IC stages, policies) or informal (principal preference, trusted advisors). Chains often differ for fund commitments vs direct deals, and they can change under time pressure.
For Altss, capturing decision chains improves both outreach routing and accurate “decision-maker” labeling.
How It Works in Practice
Decision chains are mapped through observed process signals: meeting cadence, documented governance, role validation, and historical behavior (how past decisions were made). Good mapping also captures escalation points and typical timelines.
Decision Authority and Governance
Governance determines the chain’s structure (IC composition, thresholds, delegation). Strong systems distinguish between “process owner” (who runs steps) and “authority holder” (who approves).
Common Misconceptions
- One person always decides.
- Decision chains are stable over time.
- Institutions always have faster processes than family offices.
Key Takeaways
- Chains explain why great opportunities stall.
- Capture both steps and stakeholders, not just titles.
- Chains vary by investment type and urgency.