Fact: Pyramid-type professional service firms lose efficiency with growth.
Top-down, command-and-control models use policies to control individual action. They assume that management can write policy, and workers will know and adhere to all policies. They condition their employees to be subservient executers of work orders handed down the pyramid, and they most often do not empower them to make decisions that they're most capable of making because of their hands-on experience.
Today's quick-change environment requires flexibility of policy to give the customer what they need at the moment and allows neither the time to write policy for every situation nor the time required to understand and adhere to micro-management.
Conversely, the teams bathed in feedback model assumes that smart people who are committed to the philosophy of self-management and to exposing their work-in-progress to feedback will make the right decisions and don't need policy manuals.
Think about this in relation to the Enron/Anderson debacle. If the employees at Anderson had been properly sharing the power, would they have blindly obeyed orders from above to shred documents?