Jensen-Meckling, effective decisionmaking in ISD projects can be conceptualized as how effectively the activities encompassed by each class of project decision rights are accomplished during the ISD process, or decision rights exercise effectiveness.
Building on Fama and Jensen’s (1983) observation, organizations reduce coordination costs by delegating initiation and implementation activities to agents wit valuable relevant knowledge (here, the IT unit), and mitigate agency problems by separating the management (initiation and implementation) and control (ratification and monitoring) of decisions.