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If you take away both slack and autonomy, (I.e. "running lean" but with a stratified org) you get the worst of both worlds.

Laborers are expected to spend every billable moment working on work defined and prioritized by someone else. They are unable to use their intimate knowledge of the work to improve how things work, to prepare for what's next, to keep things tidy and safe, because none of this has "value" for management.

This is an org that will grind itself to powder before it succeeds.