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> When you operate at this type of scale, centralization is the enemy of efficiency. This is a paradox. In order to be efficient on a macro level, it requires b
by rk06 5y ago
> When you operate at this type of scale, centralization is the enemy of efficiency. This is a paradox. In order to be efficient on a macro level, it requires being (very) inefficient at the micro level.
Counterexample: amazon
if every team is reinventing square wheels, they are adding a lot of inefficiencies which worsens the situation at macro level.
- phgn 5y agoBut if every team has to wait for planning from a centralized decision maker who doesn't have all the context, they won't get any important work done as well. Or they loose the motivation that comes with owning services yourself. A paradox, as the author wrote. Startups are also duplicating the work of each other, and succeed against big companies because this makes them more agile. I always thought that seeing internal orgs as startups was the master stroke of Amazon and the reason for its many product successes -- but it has the downsides described in the article.