replacing policy with principles

The curious thing about organizations is that having more people somehow doesn't equal more output. “As size and complexity of an organization increases, productivity of individuals working in that organization tends to decrease,” he says. As headcount grows, so too does the policy-and-paperwork stuff that gets in the way of rapid iteration and scale.

Why is this the case? “I think it comes down to human nature and the way we react to problems,” Curtis says. Our natural response to any problem — from a downed server to a social gaffe — is to try to ensure that it doesn’t happen again. In companies, more often that not, those solutions take the form of new policies. “What happens when you create a new policy, of course, is that you have to fit it into all of your existing rules.” And so begins a web of ever-increasing complexity that's all about prevention. Soon, you start to hit safeguards no matter what it is you're trying to do.

To avoid this type of bureaucracy from the very beginning of your company, you should adopt two particular tactics: “First, you have to build teams with good judgment, because you need to be able to put your trust in people,” Curtis says. “Then you shape that good judgment with strong principles.”

Minimizing rules that become roadblocks in your organization will only work if you’ve built a team that will make good decisions in the absence of rigid structure. Your hiring process is where you can take the biggest strides toward preventing bureaucracy.


Interview with Airbnb VP Engineering Mike Curtis
"Bureaucracy Isn’t Inevitable — Here’s How Airbnb Beat It" First Round Review. 5/18/2015