Hierarchy and Scaling
Martin Gonzalez and Josh Yellin:
In addition, people often conflate hierarchy with bureaucracy because they often expand in tandem. All else being equal, 50 people will always need more meetings, documentation, and approval processes than five. Nevertheless, it’s possible to reap the positive aspects of hierarchy in a growing startup without suffering from the downsides of too much bureaucracy. Maverick managers get into trouble when they ban hierarchy in the hopes of minimizing bureaucracy, but unleash chaos instead.