I don't really know that that's a "theory". That's just how you scale, isn't it? "Common sense" works for a company of 25 people when the founder is directly in

I don't really know that that's a "theory". That's just how you scale, isn't it? "Common sense" works for a company of 25 people when the founder is directly involved with hiring and training of every person. It fails though when you employ 50,000 and the CEO turns over four times in a decade. Putting in "policies" and requiring adherence to these policies is a way to keep the train moving even when the CEO is fired/arrested/etc. "Just follow the SOP and you'll be fine."