Overhead Is a Design Choice
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Overhead Is a Design Choice
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Most companies treat rising overhead as evidence their business is scaling. Arco treats it as evidence their architecture is failing. This episode makes the case that overhead is not an operational burden — it is a structural indictment. It defines the Coordination Tax (20–30% of operating budget in legacy firms), introduces Operational Drag as the metric that replaces productivity in an autonomous business, and explains why the architectural mandate is to hold Operational Drag below 5% from day one.
Concepts introduced: Coordination Tax, Operational Drag, Rebuild Tax, the Stewardship Model.
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Linked memo: arcoventure.studio/blog/overhead-is-a-design-choice
Arco Lexicon: arcoventure.studio/lexicon
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