Decision Pattern 17: Uphold the Policy or Override It?

When This Decision Becomes a Problem

This issue arises when a previously established policy is not functioning effectively on the ground, failing to deliver the expected results, or when the environment and underlying assumptions have changed. Yet, you hear phrases like, “We decided on it, so we should stick to it,” or “Changing it now will make us look indecisive.” The core problem here is whether upholding the policy has become an end in itself, causing you to lose sight of the original goals of achieving results and adapting. Especially for small and medium-sized enterprises (SMEs), consciously considering the reversibility of management decisions—whether you can revert to a previous state—is crucial for maintaining agility.

Why “Upholding the Policy” Seems Rational

The decision to maintain a policy can seem rational in the short term because it demonstrates organizational consistency, prevents confusion on the front lines, and avoids increasing explanation costs. However, what is often overlooked is that the policy is maintained out of inertia, without verifying the original premises under which it was established and whether those premises still hold true today. This state carries the risk of undermining the flexibility of management decisions.

The Moment a Policy Transforms from a “Decision” to a “Rule”

A policy transforms from a living “decision” into a mere “rule to be followed” when proposed changes are emotionally rejected, when suggestions for revision are treated as “opposition,” or when the background and intent behind the policy are no longer discussed. At this moment, the organization makes it difficult to update business processes in response to changing circumstances, taking its first step toward rigidity.

The Structure That Makes Overriding Seem Like Failure

The difficulty in deciding to override a policy is not solely due to fear of failure. Often, the underlying structure is problematic: the original decision-making authority may be ambiguous, clear criteria for change may be absent, or overriding may be perceived as directly negating past decisions or raising issues of responsibility. As a result, “appearances” are prioritized over rationality, becoming a factor that hinders organizational growth.

What Happens in Organizations That Can Override Policies

Organizations that can revise policies as needed without major disruption share common characteristics. They treat policies not as absolute mandates but as “temporary placements.” They have a culture where the conditions for change are implicitly shared, and changes themselves are viewed positively as “updates” or “learning,” not as “failures.” The key is not the frequency of overrides, but whether the “structure that allows overriding” is embedded within the organizational design.

The Point Where a Policy Becomes Irreversible

A policy becomes extremely difficult to override—essentially “irreversible”—when the following elements align:

• The policy is strongly tied to personnel evaluations and promotions.
• It is directly embedded in external contracts or internal systems.
• The scope of impact from changing the policy is vast and unpredictable.

In this state, even if the policy is recognized as flawed, the organization easily falls into an irrational situation where “continuation is prioritized over correctness.”

Questions to Rethink This Decision

To enhance the reversibility of management decisions and prevent rigidity, it is effective to regularly ask the following questions:

• Under what premises was this policy established?
• What conditions would indicate that those premises have changed?
• When overriding this policy, who is authorized to make and execute that decision? (Is the delegation of authority appropriate?)
• Is this policy still functioning as a “decision,” or has it become a “rule”?

If you cannot answer these questions clearly, the problem likely lies not in the binary choice of “uphold or change,” but in how the policy itself is managed or in the organization’s decision-making processes.