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Before moving on, let’s recap:

  • Bureaucracies are replication machines. They’re designed for exploit, not explore.
  • Bureaucracies tend to be monocultures. They’re run by individuals temperamentally inclined to favor the status quo.
  • Bureaucratic information systems fail to capture the hidden costs of one-sided trade-offs. As a result, many decisions are underinformed and, therefore, suboptimal.
  • Bureaucracies tend to enforce uniform trade-offs across the entire organization. Though unsophisticated, this preserves the center’s power and sense of order.
  • The bureaucratic aversion to ambiguity leads to either/or thinking. Rather than maintaining a creative tension, organizations tend to whipsaw between counterposed priorities.