The tolerated pain
In many owner-managed and growing businesses, one person makes most of the decisions that matter. Only the managing director approves discounts above a certain level. Only the operations director can authorise overtime or change a delivery schedule. Only the founder signs off new suppliers. Staff know the rule: if it is not routine, it waits for that person.
When that person is in the building, it mostly works, if slowly. When they are in back-to-back meetings, visiting a client, travelling or on leave, work piles up. Quotes are not sent. Orders are not confirmed. Customers wait for answers that nobody else is allowed to give. Staff send messages and hope for a reply between meetings.
This article is about decision rights. The related risk that critical know-how exists in only one person's memory, and what that means for continuity if they leave, is covered in when one employee knows how everything works. Here the person may have documented everything. The problem is that nobody else is permitted to decide.
Why businesses tolerate it
- Control feels safer. Owners worry that delegated decisions will be poorer or riskier.
- Authority was never written down. Decision rights grew informally, so staff assume everything needs the top person.
- The bottleneck is also the expert. The decision-maker often genuinely knows best, which makes delegation feel wasteful.
- Delays are blamed on workload. "She is very busy" sounds like a reason, not a design flaw.
- Nobody measures waiting. The cost of decisions that sit for days never appears in the accounts.
The emotional side of this, where a founder's identity becomes tied to every decision, is explored in when the founder's identity is fused with every task.
Absence is certain, not exceptional
Every decision-maker will be unavailable regularly. In South Africa, the Department of Employment and Labour's basic guide to sick leave states that workers may take, over a three-year cycle, the number of days they would normally work in six weeks as paid sick leave. Add annual leave, travel, client visits, training and long meetings, and a single decision-maker may be out of reach for a significant share of the working year. A process that works only when one person is available is designed to stall.
Operational symptoms
- queues of quotes, orders or exceptions waiting for one person's sign-off;
- staff saying "I'll have to check with the boss" for routine variations;
- decisions made in a rush late at night or between meetings, with little context;
- the decision-maker unable to take leave without daily calls;
- customers chasing answers and sometimes going elsewhere;
- capable managers who feel they are not trusted and leave.
The mechanics of how a single approval holds up a whole chain are set out in why one approval holds up an entire process.
How the pain becomes money
- Revenue cost: quotes and orders that wait for approval lose some deals to faster competitors.
- Idle and waiting cost: staff and equipment wait for decisions before they can proceed.
- Cash-flow cost: delayed orders mean delayed invoicing and collection.
- Decision-quality cost: rushed decisions, made with little context to clear a backlog, are more likely to be wrong.
- Retention cost: managers who cannot decide anything look for roles where they can.
- Scaling cost: the business cannot grow faster than one person can decide.
An illustrative cost model
This example is illustrative. Every figure is an assumption for a hypothetical business. Picture a Western Cape industrial equipment supplier with 35 staff, where the managing director approves all quotes with non-standard pricing.
| Assumption | Value |
|---|---|
| Non-standard quotes per month | 40 |
| Average quote value | R85,000 |
| Normal win rate | 30% |
| Quotes delayed more than two days because the approver is unavailable | 25% |
| Assumed reduction in win rate on delayed quotes | 5 percentage points |
| Gross margin | 28% |
| Staff time spent chasing approvals per month | 20 hours at R300 an hour |
- Delayed quotes per year: 40 × 12 × 25% = 120
- Deals lost to delay: 120 × 5% = 6 a year
- Lost gross profit: 6 × R85,000 × 28% = R142,800
- Chasing time: 20 hours × 12 × R300 = R72,000
- Illustrative total: about R215,000 a year
The assumed effect of delay on win rate is the most uncertain number here. Test it against your own records by comparing win rates on quotes sent quickly with those that waited. The model also ignores retention and scaling effects, which are harder to price but often larger.
When it becomes commercially urgent
- the decision-maker is planning extended leave, a sabbatical or a step back from daily operations;
- sales are growing, so the queue of approvals grows faster than the person can clear it;
- customers comment on slow responses or deals are lost to quicker competitors;
- a capable manager resigns citing lack of authority;
- the business is preparing for sale or investment, where dependence on one person reduces value.
What better looks like
The fix is not to remove the decision-maker. It is to decide in advance who can decide what, within which limits, and who stands in when the usual person is unavailable.
Written decision rights
A simple delegation table lists the main decision types, such as discounts, credit limits, overtime, supplier changes and refunds, with value limits for each role. Staff then know which decisions they can make and which must go up. A practical guide to spotting over-dependence is how to know whether your business depends too much on one person.
One clear decider for each decision
Atlassian's DACI decision-making play separates the driver, who gathers information and moves the decision forward, from a single approver, the contributors who give input and those who need to be informed. Naming one approver for each decision, and a deputy, stops decisions waiting for a group or for whoever is most senior.
Approvals that can be reassigned
Digital approval tools make delegation practical. Microsoft's guide to top scenarios with approval flows in Power Automate explains that an approver can reassign a request to someone else, and that a request can be sent to several people where the first response is enough to proceed. That means a deputy can act when the usual approver is away, with a record of who decided.
Guardrails, not gatekeeping
Delegation works best with clear limits and visibility. The decision-maker reviews a summary of delegated decisions each week rather than approving each one beforehand. Why approval processes so often turn into bottlenecks is discussed in why approval processes become bottlenecks.
Practical first steps
- List the decisions that wait. For two weeks, note every decision that waited for one person, and how long it waited.
- Group by type and value. Most will fall into a few categories with typical values.
- Set limits. Agree which roles can decide each category up to what value.
- Name deputies. For every decision type that stays with one person, name a deputy for absences.
- Review weekly at first. The decision-maker reviews delegated decisions for a month, then less often as confidence grows.
The bottom line
A business where every important decision waits for one person runs at the speed of that person's calendar. The cost appears as lost deals, idle staff, delayed cash and frustrated managers. Writing down who can decide what, naming deputies and using tools that let approvals move with people turns a single point of delay into a business that keeps working when its leader is away.
Sources and further reading
- Basic Guide to Sick Leave (last verified 10 October 2026)
- DACI: A Decision-Making Framework - Atlassian Team Playbook (last verified 10 October 2026)
- How to - Top scenarios with approval flows - Power Automate (last verified 10 October 2026)
Related Mellorca reading
- The Human Dispatcher: The Cost of Manually Routing Every Incoming Request
- When Your Experts Become the Help Desk: The Cost of Routine Requests
- Which Version Is Final? The Cost of Teams Working From Different Copies