The article highlights how small companies, particularly those leveraging AI, can outperform traditional firms by dramatically reducing the coordination overhead that typically plagues larger organizations. A case study illustrates this with a software company generating $40 million in annual recurring revenue with just eleven employees. In contrast, a conventional firm of similar revenue might employ 200-300 people. This disparity stems from the ability of AI to handle tasks that would otherwise require significant human management and coordination. The piece outlines a shift in the economic model of business. Traditionally, companies grew to manage transaction costs effectively, relying on a hierarchy to coordinate efforts. Now, AI agents minimize these transaction costs to near zero, allowing firms to operate with fewer employees. A CTO's experience reflects this change. In a month at a 150-person company, she spent 88% of her time on coordination tasks. After moving to a nine-person firm, her calendar shrank to just five meetings, with a significant portion of her time now devoted to decisions requiring human judgment rather than administrative overhead. The article challenges executives to reconsider the value of their roles. Many believe their judgment is irreplaceable, but much of their work revolves around pattern recognition and coordination that AI can replicate. Companies that thrive in this new environment tend to streamline roles into three key functions: strategic decision-making, technical oversight, and resource management. These roles focus on leveraging AI to enhance efficiency, allowing businesses to operate with minimal headcount while maintaining output and adaptability.