[Verse 1] When companies start small and lean Everyone knows the bigger dream But as they grow beyond their size Something shifts before their eyes The CEO wants profit high Middle managers just survive Each department has its own goal Nobody sees the bigger whole [Chorus] Principal-agent, interests divide What the owners want gets pushed aside Agents respond to what they see Not the company's destiny Structural gaps, not moral flaws Everyone follows their own cause Principal-agent, can't align When the incentives don't combine [Verse 2] Sarah runs the sales division Bonuses based on her decision Quarter targets drive her team Long-term health's not in the scheme Meanwhile Tom in quality control Wants perfection as his goal Slowing down to check each part While sales are falling off the chart [Chorus] Principal-agent, interests divide What the owners want gets pushed aside Agents respond to what they see Not the company's destiny Structural gaps, not moral flaws Everyone follows their own cause Principal-agent, can't align When the incentives don't combine [Bridge] It's not about dishonesty It's rational strategy When your bonus depends on speed Why would you plant a long-term seed? Information flows upward slow Middle layers filter what they know By the time it reaches the top The warning signs have come to stop [Verse 3] Government agencies too Face this problem through and through Citizens want results that last But budgets reward spending fast Bureaucrats play it safe and sound Innovation rarely found Risk-averse beats taking chances When failure hurts career advances [Chorus] Principal-agent, interests divide What the owners want gets pushed aside Agents respond to what they see Not the company's destiny Structural gaps, not moral flaws Everyone follows their own cause Principal-agent, can't align When the incentives don't combine [Outro] Scale creates the great divide Good intentions cast aside Fix the structure, fix the game Or the results stay the same Principal-agent, understand Why large organizations can't command The loyalty they think they've earned Until incentives are returned
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