Refragmentation and why corporates don't really get it

Refragmentation is a secular trend - meaning it's here to stay. The decrease in transaction cost that has empowered consumers is shrinking the boundaries of the firm (Coase) and making it more porous. Hence the Cambrian explosion in startups. Hence managing contractors becoming a core skill. 

In a refragmented world without lifelong corporate tenure, maintaining and providing value to your own network has become a key determinant of career success. Tech industry karma is alive and well - we're open and we give. When our people are successful, it's good for all of us. Pay it forward. 

Large companies are often stuck in a previous paradigm. Power and responsibility aren't devolved. The hierarchy can't process the edge cases and so starts inventing process and bureaucracy. And then people at the edges stop acting like people and start acting like corporate automatons driven by greed and by fear.

That's the thought I had when I saw this craziness that Holger of German Autolabs posted on Facebook:

I really hope that we find out who this is. Not unlike METRO's disappointing ad campaign, there are a set of rules about how to engage with small companies hoping to make a dent in the universe. This breaks most of them.