The root of the conflict, (like all power struggles) is money. The person paying for a product is trying to solve a problem. And for that they provide money to people whose business it is to figure out how to solve problems. The client therefore brings two positive things to the table: the ability for people to provide for their families and accumulate desirable possessions and experiences (represented by money), and a thorny problem that requires a number of those people to solve.
Unfortunately, they also quite often bring a third thing to the table, which is ceded to them because of what is perceived to be their "ownership" of the problem: They bring an excessive amount of power over the final solution. They have the power to pull the plug, to remove the ability for the people working on the problem to provide for themselves, their families and their loved ones.
So with the imbalance of power that comes from a typical client relationship, excessive hierarchy is often immediately brought in as a way of resolving the potential risk that money or time will be wasted. Results must be provided by a certain date, so the project now has to be managed, therefore Project Management is born. And the client now needs to be managed to provide a line of defense for the team that is building the thing, therefore Account Management is born.
And you need those lines of defense if you're trying to build something within a framework of an antagonistic client superpower. You need people to get up in the morning and get beaten up over timelines and client whims because they provide a necessary buffer between the client and the team building the project. Because the process the team needs to follow has nothing to do with hierarchy. It has to do with collaboration and communalism, with careful listening, observation and iteration. It's about involving the lots of people in the design conversation and translating what they are saying, thinking and feeling into a thing that other people will find both desirable and useful.
There are actually many paths that can get you to the answer of developing a system in which design can flourish. None of them are necessarily easy, but neither is the waste that excessive hierarchy produces.
I don't have the answer, but I think there are some different approaches to the problem - different paths which, if taken wisely, could lead to good answers.









