Procurement
Designing a spend approval chain people actually follow
Most approval chains get built once, mapped straight off the org chart, and quietly bypassed within a quarter. Here's what makes one hold.
Route by threshold, not by title
The most common design mistake is routing every requisition to the same approver regardless of amount, because that's how the org chart reads. A chain that treats a $200 stationery order and a $200,000 contract the same way trains people to either wait too long for small purchases or find a workaround. Set at least two or three dollar thresholds, each with its own approver and its own expected turnaround time.
Name a backup approver, not just an escalation path
Chains break most often when the named approver is traveling, on leave, or simply slow, and there's no defined second person - so requests stall, and someone routes around the chain entirely "just this once." A working chain names a backup for every approval step from day one, with an automatic escalation if the primary approver hasn't acted within a defined window (24-48 hours is typical for operational spend).
Separate "who can request" from "who can approve"
The chain should make it structurally impossible for the same person to both submit and approve a requisition above a trivial threshold. This isn't about distrust of any individual - it's the control that an auditor, an investor's diligence team, or your own finance team will look for first, and it costs almost nothing to configure correctly from the start.
Review the chain against actual behaviour, not the org chart
Once live, look at real data: which approval steps take the longest, and which ones get bounced back for missing information most often. A step that consistently takes four days isn't a training problem, it's usually the wrong person in that seat, or a threshold set too low for that category. Redesign around where requests actually get stuck, not around who should theoretically be responsible.
What this does not solve on its own
An approval chain controls who signs off - it does not by itself catch a legitimate-looking invoice for work that was never delivered. That's a separate control, handled by three-way match at the invoice stage, not by the approval chain earlier in the process.
Frequently asked questions
What is the biggest mistake in approval chain design?
Routing every requisition to the same approver regardless of amount, because that mirrors the org chart. A working chain uses at least two or three dollar thresholds, each with its own approver and turnaround expectation.
Why do approval chains break down after they're set up?
Usually because there's no named backup approver. When the primary approver is traveling or slow, requests stall and people route around the chain instead of waiting.
Does an approval chain prevent invoice fraud?
No. An approval chain controls who signs off before work starts. Catching a legitimate-looking invoice for undelivered work is a separate control, handled by three-way match at the invoice stage.
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