21 hours ago
- Big companies develop checks to prevent mistakes, but each check has a cost often overlooked.
- The cost of checks includes direct time and indirect effects like discouraging the best suppliers.
- Overly strict checks can lead to inefficiency, e.g., purchase committees causing 10x higher prices.
- Government checks can cripple economies, such as Chinese trade restrictions and Sarbanes-Oxley.
- For programmers, release approval processes reduce productivity and drive away top talent.
- The real danger of too many checks is losing the best people and suppliers, not just overpaying.