For small enough organization that &quot;loyalty uber alles&quot; prevents corruption. What is small enough? For a military company it&#x27;s around Dunbar number. Squad that actually works together on single issue is often optimal around 8 individuals. Company, squad and brigade are most important formations, as they have dis-proportionally high number of things expected to handle independently.<p>For this NASA o-ring bullshit, simplest solution seems to be having the technical managers and the astronauts in the same in-group. Now your loyalty is about not getting your mates killed.<p>If you need a big organization, the trick is to have that internal network of squads and companies to work somehow non-corrupt and nice manner. This is where it gets hairy. Basically you can go with assumption of corruption and apply &quot;transparency&quot; or monetary incentives (sub contractors). Or you can assume that corruption does not happen. Sometimes the mere assumption that corruption does not happen stifles it. Practically for big companies failing less than your competitors is adequate for success.