The problem with organizations is not scarcity, but bloat

Passover’s ban on leaven offers a management lesson: the real threat to organizations is not scarcity but excess; bloated structures, inflated egos and complexity that create the illusion of value while weakening performance

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Is what’s inflating your organization truly adding value, or merely creating the illusion of scale? There is something peculiar about leavened bread. Materially, it is made from the exact same ingredients, flour and water. Nothing is added, only the process changes. Yet the Torah treats it with exceptional severity. It is not only forbidden to eat, but also to possess, requiring removal, search and elimination. It is as if leaven is not merely food, but a phenomenon that must be uprooted entirely.
Rabbi Yitzhak Arama, author of Akedat Yitzhak (binding of Isaac), offers a deeper reading. Leaven is not just dough that has risen, but a metaphor for a person who has swelled. It reflects an ego that expands, traits that distort and a personality that loses its internal balance.
Matzah, by contrast, represents the same reality, flour and water, without the swelling. It embodies simplicity, precision and speed. It does not take up more space than it truly is. From here emerges a sharp managerial insight. The core problem in organizations is not lack, but excess.
How often do we see teams that expand beyond their real capacity? Managers who lose touch with reality as their status grows? Organizations that develop layers of complexity not out of necessity, but because it seems appropriate?
Organizational “leaven” is anything that takes up space beyond its true value. It may be a project that continues simply because it is difficult to admit it is no longer needed, a manager who prolongs meetings to create a sense of importance, or a culture where impression matters more than outcome.
Here, matzah becomes not only a spiritual idea but a management model. It does not create an impression, it delivers results. It does not delay, it acts. It does not swell, it remains precise.
In modern management, this insight is reinforced by philosophy and economics. Herbert Simon described “bounded rationality,” the human tendency to choose solutions that appear more complex, even when simplicity would be more effective. Complexity provides a sense of control, but often conceals a lack of clarity.
Nassim Taleb similarly warned of systems that grow beyond their capacity. Such systems may appear strong on the surface, but are in fact fragile. Excess structure can create an illusion of stability, right up to the moment everything collapses. In this sense, “Akedat Yitzhak” anticipated both perspectives. Leaven is precisely that false swelling, volume that does not generate real value.
The work before Passover, then, is not only physical cleaning but a deeper process. It requires identifying where we have “swelled,” where unnecessary layers have been added and where the connection between reality and appearance has been lost.
This applies both personally and organizationally. In a conversation with a senior figure in the defense sector, a simple yet profound principle emerged: rotate roles every few years. Not due to instability, but for the opposite reason. Remaining too long in the same position can erode relevance, sometimes without even noticing.
The same pattern can be seen globally. According to reports, U.S. President Donald Trump is considering complex geopolitical moves not out of honor, but from a pragmatic assessment of reality and its market implications. One may debate the decisions, but the approach is clear. Do not cling to image, focus on outcomes.
This may be one of the most important distinctions in management. The ability to separate what looks big from what actually works. A strong leader is not one who constantly adds, but one who knows how to remove, to reduce, refine and return the organization to a state where every component is necessary, precise and real.
Because in the end, the managerial challenge is not only how to deal with scarcity, but how to deal with excess. Over time, it is not what is missing that brings an organization down, but what has swelled beyond what it truly is.
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