Comment by cgio
These inefficiencies are akin to having some “wrong” weights in a huge model. Corporations also average over their individual contributions, positive or negative. And negative feedback loops may be individually detrimental but collectively optimising.
Not really.
Human flaws permeate the entire body of a corporation. The scale may average out some of it, but humans are not just randomly flawed - they're also systematically flawed on the top of it, and averaging does little to counter that.
And the "top end" of the corporation doesn't have enough averaging to mitigate even the random flaws. If someone in the C-suite makes the dumbest decisions ever, the entire system may suffer immense damage before it corrects - if it ever does.