TIME OPERATORS

Library/T-03

Approval Thresholds

Set the line below which nobody needs to ask.

VestT-03

The pattern it solves

Everything needs sign-off regardless of stakes.

Signals you need it

Small purchases, discounts or changes wait on the owner. The owner approves almost everything they are asked.

Use it when

The approval rate is very high — the owner is rubber-stamping.

Do not use it when

Approvals are frequently declined for good reason; fix the upstream quality first (leak 13).

Naming where a tool does not apply is part of the tool.

What it takes in

A sample of recent approvals; how many were declined and why.

What you end up with

Thresholds by category (dollar amount, customer impact, reversibility) with who may approve at each level.

The steps

  1. 1.Pull the last 20–30 approvals.
  2. 2.Count how many were declined.
  3. 3.Find the level below which the answer was always yes.
  4. 4.Set the threshold there, with a reversibility test: anything easy to undo gets a higher threshold.
  5. 5.Log approvals above the line for 30 days and adjust.

How it returns time

Cuts both the owner's approval time and the elapsed time the work sits waiting — usually the larger cost.

What to measure

Approvals reaching the owner per week; average days work waits for approval.

What to measure, before and after. Not what anyone achieved — there are no client results to report.

Where it comes from

General management practice.

What it fixes

The leaks this addresses

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