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A failure mode where IOA degradation forces governing bodies into moral referee roles they are not designed for. Boards become arbiters of contested values rather than stewards of institutional direction. This happens when participation architecture cannot channel disagreement, escalation boundaries fail, and every conflict reaches governance level as a moral emergency.
A university board spends every meeting arbitrating between campus factions on political issues. This isn't governance—it's moral arbitration forced by IOA failure. The board has no architecture for channelling disagreement, so every disagreement becomes a governance crisis requiring board moral judgement.
Section 5: Five Failure Modes