Abstract: The reform of administrative examination and approval at the grassroots level is the main task of optimizing the construction of the “business environment”, aiming to improve the efficiency of service supply by “reducing and standardizing” the administrative examination and approval power. In the process of reform, the implementation of policies is prone to deviations, and the implementation results deviate from or even conflict with the goals. The reform of the administrative examination and approval bureau of S city in H province is faced with the dilemma of implementation deviation, which is analyzed by constructing the framework of “institutional logic-organizational strategy” and introducing institutional elasticity. It is found that the interaction process between “logic” and “strategy” causes the contraction of institutional elasticity, and the policy implementation based on the initial logic becomes the main driving force for deviation. Therefore, it is necessary to improve the level of rule of law in the administrative team, improve the normalization mechanism of trial and management interaction, straighten out the chain of rights and responsibilities of grassroots governments around the needs of practice, avoid the generation of deviations, and improve the quality of services.