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How many executives does it take to approve a broken office chair? In one organisation I advised, the answer was seven.
The request moved from Administration to Procurement, Finance, Risk, Legal, the Executive Committee and, eventually, the Chief Executive Officer. By the time approval arrived, the employee had borrowed a chair from the boardroom. It was humorous. The financial consequences were not.
Most companies have a problem when it comes to approvals. As they say, weak men hide behind bureaucracy to appear strong. Every unnecessary layer increases transaction costs, slows revenue conversion and weakens accountability.
Staff spend productive hours preparing memos, defending routine decisions and attending meetings whose only output is another meeting. READ MORE |