Policies are organizational scar tissue. They are codified overreactions to situations that are unlikely to happen again. They are collective punishment for the misdeeds of an individual. This is how bureaucracies are born. No one sets out to create a bureaucracy. They sneak up on companies slowly. They are created one policy-one scar-at a time. So don't scar on the first cut. Don't create a policy because one person did something wrong once. Policies are only meant for situations that come up over and over again.
Policies often emerge as a reaction to past mistakes, becoming a sort of organizational "scar tissue." They are designed based on unfortunate incidents that are unlikely to recur, effectively punishing everyone for the actions of a few. This tendency can lead to the formation of bureaucratic systems within companies, which develop gradually and unintentionally through the accumulation of many policies, each one addressing a singular event.
The author, Jason Fried, emphasizes the importance of caution when instituting policies. He warns against creating rules due to isolated incidents, advocating for a focus on recurring situations that genuinely merit regulation. By avoiding unnecessary policies in reaction to singular events, organizations can prevent the unintentional creation of cumbersome bureaucracies and maintain a more agile and effective work environment.