---
title: "Meaning & Key Takeaway of: The reason this works is that under…"
description: "\"“The reason this works is that under normal circumstances, employers and employees alike conspire to maintain the fiction that a corporation is a set o..."
image: "https://sms4smile.com/quotes/i/6a2/venkatesh-g-rao-46651_quote_the-reason-this-works-is-that-under-norm_649504.jpg"
---

#  The reason this works is that under normal circumstances…

![“The reason this works is that under normal circumstances, employers and employees alike conspire to maintain the fiction that a corporation is a set of defined, rational roles that are filled by people with acceptable levels of skill, executing rational policies and procedures that are sufficient…” quote by Venkatesh G. Rao](https://sms4smile.com/quotes/i/6a2/venkatesh-g-rao-46651_quote_the-reason-this-works-is-that-under-norm_649504.jpg)   [Download](https://sms4smile.com/quotes/i/6a2/venkatesh-g-rao-46651_quote_the-reason-this-works-is-that-under-norm_649504.jpg) [Open image](https://sms4smile.com/quotes/i/6a2/venkatesh-g-rao-46651_quote_the-reason-this-works-is-that-under-norm_649504.jpg)

> ““The reason this works is that under normal circumstances, employers and employees alike conspire to maintain the fiction that a corporation is a set of defined, rational roles that are filled by people with acceptable levels of skill, executing rational policies and procedures that are sufficient to get things done and turn a profit. In practice, nothing would ever get done if everybody did this. The rules aren’t a minimum definition of the profit-making business of a corporation. They are well below the minimum. Even disengaged minimum-effort types (“losers” in the Gervais Principle‡‡ sense) do more than this under normal circumstances.””

[Venkatesh G. Rao](https://sms4smile.com/quotes/author/venkatesh-g-rao/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Corporate rules are deliberately vague; they rely on people’s initiative, not strict role definitions, to achieve results.

**In simple terms:** Rules are minimal; people fill the gaps.

Key Takeaway

Leverage flexibility in organizations.

Themes

business psychology organizational behavior

Mood

analytical critical

Type

theoretical observational

When to use this quote

- project management
- team leadership
- startup culture

Key Concepts

bureaucracy agency informal networks

Questions to Reflect On

- What mechanisms keep informal effort aligned?
- How much ambiguity is tolerable?

A Different Perspective

Risk of chaos without enough structure.

★ ★ ★ ★ ★   No ratings yet

[Corporation](https://sms4smile.com/quotes/about/corporation/)

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