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![](https://static.time.com/v3/assets/bltea6093859af6183b/blt5d2a2e7be9796ece/6987eaa65f570f16adb1917f/ben-horowitz.jpg?branch=production&width=1200&quality=75&auto=webp&crop=16:9)


# The Difference Between Good and Bad Organizations


by 

[Shane Parrish](https://time.com/author/shane-parrish/)


## Shane Parrish


Jun 5, 2015 11:00 AM UTC

![Ben Horowitz speaks at SXSW on March 9, 2014 in Austin, Texas.](https://static.time.com/v3/assets/bltea6093859af6183b/blt5d2a2e7be9796ece/6987eaa65f570f16adb1917f/ben-horowitz.jpg?branch=production&width=3840&quality=75&auto=webp&crop=3:2)

Ben Horowitz speaks at SXSW on March 9, 2014 in Austin, Texas.

Ben Horowitz speaks at SXSW on March 9, 2014 in Austin, Texas.Travis P Ball—Getty Images

by 

[Shane Parrish](https://time.com/author/shane-parrish/)


## Shane Parrish


Jun 5, 2015 11:00 AM UTC

Which organization do you work for?

This excerpt is from one of the best business leadership books I’ve ever read: [The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers](http://www.amazon.com/exec/obidos/ASIN/0062273205/farnamstreet-20)

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> “”

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If you liked that you’ll love the book — [The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers](http://www.amazon.com/exec/obidos/ASIN/0062273205/farnamstreet-20). You’ll also love this[insight from Charlie Munger on bureaucracies](http://www.farnamstreetblog.com/2012/06/what-is-a-bureaucracy-and-why-they-are-so-hard-to-change/).

**_This piece originally appeared on_** [**_Farnam Street_**](http://www.farnamstreetblog.com/)**_._**

**Join over 50,000 readers and get a free weekly update via email** [**here**](http://www.farnamstreetblog.com/newsletter/)**.**

The Difference Between Good and Bad Organizations

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