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> The people running the organization put the wrong incentives in place. this assume that the organizations are mishandled. you don't need to posit such a requ
by avereveard 5y ago
> The people running the organization put the wrong incentives in place.
this assume that the organizations are mishandled. you don't need to posit such a requirement, it's even simpler, as the organization grow, the cost of mistakes increase, while the margins decrease. this is what requires controls structure to be put in place, slowing and weighting down operations.
it's not a bad thing either, just the result of doing business at scale. many startup that find themselves at a significant market size quickly and quietly drop the "move fast and break things" culture, for the very same reason
- TheOtherHobbes 5y agoPerhaps it's more the cost of personal responsibility for mistakes increases. Bureaucratic inefficiency is a huge drag on profitability. But it becomes invisible in a way that obvious mistakes and failures don't. If a new project fails, it's an obvious failure. But there's no business metric that tells a company how much it's wasting on pointless processes and paperwork. So even though the cost of wastage can be bigger than a high profile failure, it never appears in the accounts. There is a flip side, which is the rando CEO who goes on an uninformed acquisition spree and blows $x bn on companies that don't integrate and end up being a huge net loss. Or starts numerous reorgs and rebrands which add more friction to no benefit.