If the teams in your organization are independent, the organization has failed its purpose

The value of any single organization is that a common leadership allows people to create value more efficiently than would be possible if there were multiple smaller organizations collaborating toward the same goal.

If teams within an organization are operating independently, then those teams could function equally well as separate entities. This implies that the larger organization, comprised of multiple independent teams, would offer no advantages over numerous small companies. In such a scenario, the organization is nothing greater than the sum of its parts.

At the same time, a large organization comprised of independent team still faces all the downsides of a large organization, namely:

1. Regulation: Bigger companies inherently face more regulatory challenges due to their size and reach.
2. Misalignment of shareholders and employees. In larger orgs the employee's individually small stock share dilutes the impact of their actions on the overall value of the firm, making them less likely to act in their role as shareholder and more as employees.
3. Lower granularity for evolutionary pressure and natural selection: Businesses that deliver value should grow, those that do not should die. But larger orgs lump poorly- and well-performing units together, and prevent them from dying or growing independently.