Sunday, July 18, 2010

Big Companies

  • Big companies have greater entropy and therefore increased inefficiencies.
  • Increased inefficiencies result in greater viscosity; you need to put in a lot more effort to get something done.
  • Dealing with these inefficiencies (processes) generates a lot of busy work, work that is time consuming but not valuable.
  • Busy work dilutes focus and results in even further inefficiencies and the vicious cycle continuous till you end up with individual goals that are orthogonal to the companies goals.
  • Everyone in the company has a different context and is dealing with a different level of abstraction. Assuming that transparency is the key to keeping people aligned misses the point that the goals need to be communicated differently to different individuals within the company. This is a very hard problem to solve.

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