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Bureaucracy stifles innovation as the cost of increased risk management. Being incredibly risk adverse can often be a very short sighted attitude because you s
by beaconstudios 6y ago
Bureaucracy stifles innovation as the cost of increased risk management. Being incredibly risk adverse can often be a very short sighted attitude because you surrender the opportunity cost of taking calculated risks like trying new approaches and tools.
Successful organisations are able to adapt over time, where bureaucracies only stagnate.
Markets are orthogonal to that trade off because both bureaucracies and adaptive organisations operate within the market. It's just a tool, you can use it well or poorly.
- usrusr 6y agoMarkets are not orthogonal in so far as that certain forms of bureaucracy exist solely for dealing with non-market scenarios ("wartime cost plus"). You want either one or the other, never both at once (a market stifled by redundant bureaucracy) or none at all (decisionmakers just wiring the money to family members for vague promises of maybe trying to deliver, perhaps) Unfortunately it gets a bit murky in that there is another form of bureaucracy to tame markets while they are not circumvented and there's a severe lack of separation between those two forms of bureaucracies. Usually neither critics nor advocates seem to care about the distinction (which plays out much better for critics I suppose).