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Challenges of Rapid Growth and Organizational Complexity
Rapid revenue growth or excessive funding can lead to a common problem where organizations tend to hire more people to solve issues, but fail to understand the complexities of managing a large organization. As companies scale, they face challenges such as the departure of talented individuals, retention of underperforming employees, and the degradation of overall organizational quality due to the 'law of crappy people' - where the quality of each level within the company degrades to the worst person at that level. This highlights the difficulty in managing the transition from a small to a large organization and the intricacies involved in effectively running a large company.