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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.
Fortunately there is a mechanism for ensuring that the median company isn't too bureaucratic: startups. Companies never become less bureaucratic, but they do get killed by startups that haven't become bureaucratic yet, which amounts to the same thing.
Hypothesis: The degree of bureaucracy in a country's private sector is inversely proportional to the rate of startup formation.
What measures make a company more bureaucratic that people (esp. founders) often don't realize in the moment?
When you start hearing people say "we need to move everything on to SAP" you know you are about to hit that point in the curve.
Clear sign of change of cycle.
So how do you find that upside without killing it?
Companies need process though. Just not process for process sake.
Pragmatic processes
Feels like the asymmetry lies in the scale of observation. What makes sense at the micro level (individual who has accountability and manages career risk) doesn’t make sense at the macro level (bureaucratic system of speed bumps). incentive structures are at the core
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