Becoming more bureaucratic kills companies. And yet no one who introduces measures that make a company more bureaucratic ever seems to realize they're doing it. All they see is the upside.
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Suppose you’re a successful startup that’s now become a medium-sized company. What can you do to slow the growth of bureaucracy?
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Retain the founder CEO. Founders both hate bureaucracy and have the stature to push back against it.
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Musk says the new govt on Mars will have an expiration date built into all laws. Not a company, but analogous
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Allocate programmers to build internal tools/automation/product features for auxiliary teams like account managers, sales, etc. 1. Software can encode process instead of people 2. Low headcount naturally fights bureaucracy (This has a host of other benefits, too!)
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Fail fast, but accept this only delays the inevitable link between development and eventual senescence.
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Medium size companies are a system of systems. These 3 things will help to cut bureaucracy: Proper mechansim design among different functions, quick decision-making culture & providing psychological safety to teams. Scaling the company is about getting these right for each stage.
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There are two rules: 1. Ensure everyone understands the company’s role in the market. Not to make money, but to make things of value. 2. Ensure the culture is centered on intelligence, not execution. Execution cultures are intelligence assassins. They make companies stupider.
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Base your organisational structure on Dunbar's number?
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