The Structural Decline of Organizations with Ever-Increasing Approval Chains

Why Decisions Grind to a Halt Despite More Approvals

As an organization grows and experiences failures, reactions like “Next time, we must get supervisor approval,” “Let’s add another approval step just to be safe,” or “We shouldn’t leave this to one person’s judgment” become common. In this way, approval chains grow as a well-intentioned accumulation of steps. However, once they pass a certain point, the organization begins to face a different problem. It’s not just that decisions become slow; the structure itself becomes incapable of making decisions. This is not an issue of speed, but a problem with the organizational structure itself.

Management Judgment Layer (Why)

Increasing Approval Chains Creates a “Responsibility-Avoidance Structure”

The purpose of adding approvals is often “peace of mind”—to avoid judgment errors, to align with an organizational standard, or to avoid placing responsibility on a single individual. However, structurally, increasing approval chains creates a situation where “no one is the ultimate decision-maker,” “judgment tends toward consensus,” and “failures cannot be properly analyzed.” As a result, an organization is created where accountability becomes ambiguous, not the quality of judgment.

Three Phenomena in Organizations with Ever-Increasing Approvals

① Everyone Becomes a “Non-Opposer”

The more approvers there are, the less likely people are to make proactive decisions. By not opposing, they avoid responsibility and refrain from offering standout opinions. Consequently, only safe, non-progressive decisions remain.

② Following Precedent Becomes the Optimal Solution

To get approval, whether something has been done before or previously approved by someone becomes crucial. As a result, the value that “precedent equals correctness” becomes entrenched in the organization.

③ Decisions Do Not Lead to Learning

In organizations with lengthy approval chains, the reasoning behind a decision and who decided what becomes unclear. Therefore, even when failures occur, they cannot be leveraged for future improvement, and organizational learning grinds to a halt.

Specialist Implementation Layer (How)

Characteristics of Approval Structures That Breed Decline

Approval structures common to declining organizations share the following characteristics:

• Approvers increase in a fixed, ongoing manner
• The purpose of the approval is undefined
• Decision-makers and approvers are intermixed

When these overlap, approval ceases to be a tool that aids judgment and becomes a mechanism that stops it.

The Change That Occurs in Organizations Designed with Clear Decision-Makers

Instead of adding more approvals, organizations that clearly design who the decision-maker is experience the following changes: decisions become faster, failures can be analyzed, and improvements accumulate. This allows the approval process to return to its original role as a “supporting guideline” for judgment.

Common Misconceptions

Misconception ①: Without More Approvals, We Lose Control

The cause of losing control is not a lack of approvals. The real problem lies in the absence of clear decision criteria or unclear decision-makers.

Misconception ②: Consensus is Safer

Consensus may appear safer on the surface, but it carries significant risks: “responsibility is dispersed” and “learning stops.” If you aim for reversible management decisions, clarifying accountability is essential.

Final Questions to Confirm with This Judgment

Regarding your organization’s approval process, try answering these three questions:

• Who does this approval exist for?
• Is the decision-maker clearly defined?
• Is the structure verifiable in case of failure?

If you cannot answer these, that approval chain may be creating a structure for organizational decline.

Summary (No Single Answer)

The increase in approval chains begins with good intentions. However, when that goodwill transforms into a “responsibility-avoidance structure,” organizational decline begins. The problem is not the number of approvals but the judgment structure itself. What strengthens an organization is not the thickness of its approvals but the clarity of its judgment. For SME leaders aiming to increase speed while ensuring reversibility in management decisions, the core of this judgment pattern is to review operational processes and delegation of authority, and to clearly define “who decides”—the very foundation of organizational design.