Slowly but surely, you can dismantle the bureaucracy in your business one tactic at a time. In an article for Intuit, John Boitnott discusses the tactics at your disposal. The first of them is to avoid segmentation of the workforce; get people involved in various aspects of the business so that they are not utterly dependent on other people for certain work to proceed. Always be looking to reduce how many levels of approval must be sought to take action. This will probably involve trusting employees more. And for the sake of facilitating interactions in general, seek out collaboration tools that help people work together.
You can view the full article here: http://quickbooks.intuit.com/r/growing-your-business/minimize-bureaucracy-business-grows/