The Knowledge Project with Shane Parrish cover image

#158 Aaron Dignan: Change The Way You Work

The Knowledge Project with Shane Parrish

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"The Organizational Doom Loop": How Startups Turn Into Bureaucratic Nightmares

Organizations tend to move from chaos to bureaucracy, and in the process, lose creativity and innovation. The desire for control and certainty leads to a narrowing of space for human judgment and randomness. External expectations compound the problem, leading to a doubling down on structure. The result is a large, static cash machine that lacks innovation, leading to the acquisition of smaller companies. However, the acquired creativity is eventually squashed by the larger organization's operating system.

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