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They don't spend $200k on consultants just because it's fun. They do it when there are already difficulties in figuring out how to productively use the employees who make $40k (say 20 of them).

This is not to say managers don't make stupid decisions, but they are more like bets. Somewhere between the fall of Nokia and the hit of iphone are thousands of decisions that lead to hiring or firing some 10-100 people.



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