The Radius Theory of Business

The theory that in business the further you are from the person deriving value from your product or making the decision, the more your risk increases.

Reference: Am I Being Too Subtle

I believe in the radius theory of business, where your ability to succeed is ultimately limited by the number of people between you and the decision. That’s because the farther from you the decision is made, the less you control the risk. History shows that businesses get buried when they don’t delegate enough—but also when they delegate too much.

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