So who does run a company these days? Not the shareholders or the board. They largely find out after the fact that things have gone well or badly. Nor are firms cooperatives. Anybody who has tried to run a company by consensus will tell you how disastrously bad an idea that is. Interminable meetings follow hard upon each other's heels as everybody tries to get everybody else to see his or her point of view. Nothing gets done, and tempers fray. The problem with consensus is that people are not allowed to be different. It's like trying to drive a car in which the brake and the accelerator have to do similar jobs. No, what really works inside a big firm is division of labour: you do what you're good at, I'll do what I'm good at, and we'll coordinate our actions. That is what actually happens in practice inside most companies, and good management means good coordination. The employees specialise and exchange, just like participants in a market, or citizens in a city. The