Innovation is art - it can’t be scaled.
Scaling a team creates a hierarchy to reduce coordination costs.
Hierarchy introduces the Principal-Agent problem.
Agents optimize for status and cohesion over correctness.
Going from zero to one requires a founder-led flat team.
A startup founder, going from zero to one, is first and foremost the founder of a community.
He devises and grows his own universe of thought and action and attracts (through vision, charisma, ethics, and determination) others (cofounders, customers, collaborators, investors) to his universe to create a community with a perfect alignment of interests.
Same goes for a country
It seems like every country needs to be “president/led” once in a while (a temporary dictatorship), to get out of the political status game machine.
UAE, Qatar , Dubai, China, India winning big now, because of this
Sorry Naval, I had to use Grok on this one 
The Principal-Agent problem, highlighted in the post, describes how hierarchical structures can misalign interests, a concept rooted in economics where agents (employees) prioritize status over the principal’s (founder’s) goals, as explained in the Wikipedia entry.
Research from 2011 on ResearchGate supports Naval’s view, showing that bureaucratic practices like centralization in teams can stifle creativity, which aligns with his call for flat teams to foster innovation.
The Principal-Agent problem, highlighted in the post, describes how hierarchical structures can misalign interests, a concept rooted in economics where agents (employees) prioritize status over the principal’s (founder’s) goals, as explained in the Wikipedia entry.
Research from 2011 on ResearchGate supports Naval’s view, showing that bureaucratic practices like centralization in teams can stifle creativity, which aligns with his call for flat teams to foster innovation.
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