The Other Half of 'Artists Ship': Cost of Checks in Organizations

The Cost of Checks in Companies

As companies grow and mature, they often adopt procedures and checks to mitigate risks and prevent mistakes. While these checks seem prudent, they come at a cost, both direct and indirect.

Direct costs: include the time and resources spent on verifying compliance with these checks.

Indirect costs: include the loss of potential suppliers who cannot meet the stringent requirements or the reluctance of talented individuals to join companies with burdensome processes.

The High Price of Bureaucracy

The article cites an example of software purchases in companies where a committee approval is required for purchases above a certain threshold. This process, while seemingly designed to prevent waste, actually leads to higher prices and reduced efficiency.

Increased costs: the bureaucracy involved in the committee approval process drives up the cost of software purchases, with companies often paying 10 times more for software that would have otherwise been affordable.

Disincentivizes innovation: the complexity of navigating these checks discourages startups and small companies from selling their software to larger companies.

Government Regulations: A Stifling Force

The article highlights the detrimental impact of excessive government regulations, citing historical examples of how such restrictions hindered economic growth and technological advancement.

Historical example: China's restriction on long trading voyages in the 1400s hampered its economic progress, allowing Europe to take the lead in exploration and globalization.

Modern example: The Sarbanes-Oxley Act, intended to improve corporate governance, inadvertently hampered the US IPO market, making it difficult for young companies to go public.

The Cost of Checks on Software Development

The article argues that checks imposed on software development processes can have a significant negative impact on innovation and the productivity of software programmers.

Programmers as artists: Good programmers thrive on the ability to ship their code quickly and iterate rapidly. Excessive checks hinder their creativity and motivation.

Startups vs. large companies: Startups offer programmers a more agile environment with fewer checks, allowing for faster innovation and greater satisfaction.

Loss of talent: Companies with stringent software development processes may struggle to attract and retain top talent, as programmers value the freedom to ship their code quickly and efficiently.

"Artists Ship": The Importance of Freedom

The article concludes by emphasizing the importance of giving software developers the freedom to ship their code and iterate rapidly. This freedom is essential for attracting and retaining talented programmers and fostering a culture of innovation.

Freedom to ship: Allowing programmers to ship their code without excessive bureaucracy is essential for their creativity and productivity.

Attracting artists: Companies that offer this freedom are more likely to attract and retain the best software developers, who are motivated by the ability to create and ship their work.

Innovation and growth: By embracing agility and freedom, companies can foster a culture of innovation and achieve greater success in the long run.

In Conclusion: The Power of Minimalism

The article suggests that companies and organizations should critically evaluate the cost of checks and regulations. While some checks are necessary, excessive bureaucracy can be counterproductive, stifling innovation, hindering efficiency, and driving up costs.

Think beyond the benefits: Companies should consider the potential downsides of checks before implementing them.

Embrace agility: Organizations should strive to create an environment where innovation can flourish.