Orlov on the advantages of start-ups.

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Fascinating essay by Orlov today:

I have worked in a number of start-up companies, which were quite anarchic, in a good way, and were therefore able to invent and to innovate. I have also worked in a number of big, established companies, with many hierarchies of management, and a laborious approval process for any new proposal. These companies couldn't invent or innovate worth a damn, and only continue to exist because the system favors big companies. When faced with the need to do something new, they always tried to buy a smaller, innovative company. This is because in a hierarchical organization people who know more are inevitably forced to take orders from people who know less, and often know nothing at all beyond knowing how to get promoted. The result is that in hierarchical organizations—and I have seen this over and over again—the smart people sit around and do nothing (or as little as possible) because following stupid orders is a waste of time, while the stupid people run around like chickens trying to get themselves promoted.
 
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