Perhaps it's more the cost of personal responsibility for mistakes increases.
Bureaucratic inefficiency is a huge drag on profitability. But it becomes invisible in a way that obvious mistakes and failures don't.
If a new project fails, it's an obvious failure. But there's no business metric that tells a company how much it's wasting on pointless processes and paperwork.
So even though the cost of wastage can be bigger than a high profile failure, it never appears in the accounts.
There is a flip side, which is the rando CEO who goes on an uninformed acquisition spree and blows $x bn on companies that don't integrate and end up being a huge net loss. Or starts numerous reorgs and rebrands which add more friction to no benefit.
Bureaucratic inefficiency is a huge drag on profitability. But it becomes invisible in a way that obvious mistakes and failures don't.
If a new project fails, it's an obvious failure. But there's no business metric that tells a company how much it's wasting on pointless processes and paperwork.
So even though the cost of wastage can be bigger than a high profile failure, it never appears in the accounts.
There is a flip side, which is the rando CEO who goes on an uninformed acquisition spree and blows $x bn on companies that don't integrate and end up being a huge net loss. Or starts numerous reorgs and rebrands which add more friction to no benefit.