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MANAGEMENT ARTICLE

What is Wrong with Organizations That Cannot Delegate Authority?

Even when small teams and AI accelerate operations, execution halts if decision-making authority remains tied to senior management. Based on 2026 corporate reports and delegation research, this article analyzes the connection between decision-making authority, information, and resources, the scope of delegation, exception handling, and performance verification criteria.

박소유 EditorPublished 2026년 10월 24일Updated 2026년 10월 24일
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What is Wrong with Organizations That Cannot Delegate Authority?

According to Amazon's 2025 shareholder letter released on April 9, 2026, six skilled engineers used AI coding tools to complete a new inference engine in 76 days. Amazon stated that this task was assigned to a small team separate from the organization operating existing services. In the same letter, CEO Andy Jassy explained that over the past year, the company worked on flattening the organization and expressed satisfaction with the improvements in decision-making and execution speed. This is Amazon's internal report, and it is not evidence that the same results will be reproduced if headcounts are reduced or authority is transferred. Based solely on the public disclosures, individual approval procedures or control methods cannot be verified. However, this case leaves an important question for management: even after securing technology and professional talent, if every choice must wait f…

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