Decision Latency: The Hidden Cost Behind 60% of Corporate Project Delays

Every corporate leader understands that projects rarely fail because of a lack of ideas or ambition. The real challenge lies elsewhere: the speed at which decisions are made. Research shows that 60% of corporate project delays can be traced back to decision latency — the time lost waiting for approvals, sign-offs, and consensus.

Decision latency is not just an inconvenience. It is a structural issue that quietly erodes efficiency, inflates costs, and undermines momentum.

Why Decision Latency Matters

1. Time multiplies cost.Each day a project stalls increases the cost of delivery. Staff hours are wasted, external partners remain idle, and the organisation absorbs hidden financial leakage.

2. Opportunities are missed.Slow decision-making means competitors move first. Markets evolve while organisations remain caught in review cycles, leaving teams playing catch-up rather than leading change.

3. Morale declines.Employees who see projects repeatedly stall lose confidence in leadership. Over time, this reduces engagement and pushes high performers to look elsewhere.

The Corporate Trap

Large organisations are especially vulnerable. Layers of governance are added to reduce risk, but each additional approval point extends timelines. What begins as protection quickly becomes a bottleneck.

This is not about removing control altogether. It is about recognising where governance is essential and where it is simply slowing progress without adding value.

How to Reduce Decision Latency

Streamline approvals.Cut the number of layers required for sign-off. In many cases, three approvals can safely be reduced to two without compromising accountability.

Create clear decision pathways.Ambiguity over who has authority causes unnecessary delays. Define roles early so ownership is clear at every stage.

Use time-boxed reviews.Set strict deadlines for feedback and sign-off. A review that could take weeks can often be completed in days when timelines are enforced.

Adopt sprint reviews.Rather than delaying entire projects until every element is approved, break work into smaller, testable segments that can be signed off quickly.

The Agile Advantage

At Agile Innovation Group, we see this problem repeatedly. Corporates believe delays are inevitable because “that’s how things work at scale.” The reality is different. With the right structures in place, organisations can make faster, better decisions without increasing risk.

Our approach focuses on 60–90 day sprints that target the root causes of inefficiency. When decision latency is addressed, the impact is immediate:

• Faster project delivery

• Lower operational cost

• Teams more engaged and empowered

Final Thought

Decision latency is one of the most common — and most overlooked — causes of corporate underperformance. Every day lost in decision-making is felt twice as hard in delivery.

The good news is that this is solvable. By rethinking decision pathways and introducing agile frameworks, corporates can reduce delays, regain momentum, and deliver results faster.

Sixty percent of project delays are caused by decision latency. The question is: how much is it costing your organisation?