When I was a kid, there was nothing more exciting than hearing someone shout, "No ref, no rules!" during a soccer game at recess. It felt like pure freedom. Suddenly you could use your hands, tackle people on the field, score from anywhere.
For about ten minutes, it was glorious chaos.
Then it became actual chaos. The stronger, faster kids started dominating the game. Many kids lost interest and stopped playing. Someone usually got hurt. Arguments broke out. Eventually, we'd sheepishly go back to regular rules (or one of the teachers would make us) because, well, it turned out the game was more fun in the long-run when everyone knew what they could and couldn't do.
Most of us learned this lesson on the playground and moved on, but some never did.
When CEOs Play "No Ref, No Rules"
Much of Silicon Valley has spent the last few decades running the adult version of "no ref, no rules." Mark Zuckerberg's famous motto "move fast and break things" was basically the corporate equivalent. The ideology has been intoxicating: rules are for the slow and bureaucratic, disruption is always virtuous, and speed equals progress.
And just like on the playground, it’s exciting… until reality catches up.
Theranos moved fast and promised to revolutionize medicine. Elizabeth Holmes hired lawyers who would say yes to anything, and when David Boies finally started asking uncomfortable questions, she just got rid of him, lest he reveal the technology simply didn't work. FTX moved fast and promised to democratize finance. Sam Bankman-Fried surrounded himself with people willing to play fast and loose with the law, collectively perpetuating one of the most scandalous financial frauds in recent memory. Remember WeWork’s irresponsible finances and toxic leadership, or Humane AI peddling $700 snake oil as revolutionary AI? The list goes on. In the name of moving fast, they all broke rules and norms, but also investor confidence, customer trust, and in many cases employee lives.
The patterns are easy to spot once you’re savvy to them: legal teams are labeled "cost centers," dissenting voices are marginalized, and everyone is expected to find ways to say yes or step aside. And when things turn upside down, the “no ref, no rules” crowd insists on shirking any responsibility.
These examples aren't merely business failures. They’re moral failures with real human costs by the thousands: from patients getting false diagnoses, to investors losing billions, to employees losing their livelihoods and even future employability. But hey, at least the companies moved fast!
When the Stakes Turn Deadly: Pete Hegseth's Pentagon Playground
We’ve now seen this same mentality creep into places where the consequences are life and death.
Earlier this year, Defense Secretary Pete Hegseth fired the top Judge Advocates General (TJAGs) in the same week. These are the military's top lawyers, the people whose job it is to make sure our armed forces operate within the law. Hegseth, who once reduced military lawyers to the epithet, "jagoffs," apparently decided that legal oversight was cramping his vision of a more “lethal” military.
His reasoning sounds familiar: Rules are holding us back from victory. We need to return to the "warrior ethos," unencumbered by all this “legal friction.” Why should we waste any time consulting legal experts to confirm the world’s most powerful military is aligned with the rules of engagement, Geneva Conventions, or Constitutional rights? It’s the same "no ref, no rules" mentality, except this time in the context of war, where human lives and sometimes even the world order are at stake.
It’s worth acknowledging that adversaries can certainly exploit adherence to laws and values for strategic advantage. Sure, a soccer player can gain an edge by diving for penalties or time-wasting when the ref isn't looking. But abandoning rules doesn't even the score — it forfeits the game.
Even front line officers understand this. In 2010, Gen. David Petraeus, U.S. Army, revised the rules of engagement in Afghanistan to ensure the protection of Afghani civilians during hostilities. Petraeus wrote: "We can't win without fighting but we also cannot kill or capture our way to victory. … That's exactly what the Taliban want. Don't fall into their trap." He understood that skirting legal and moral constraints creates insurgents, destroys alliances, and undermines mission success.
Hegseth apparently has a different endgame in mind. In his worldview, "move fast and break things" on the battlefield appears to be an end itself, which ironically risks undermining what the military is presumably fighting for in the first place.
Constraints Fuel Progress
Here's what those kids on the playground, Silicon Valley disruptors, and now Pentagon leadership, failed to wrap their heads around: constraints don’t stifle progress, they enable it.
Consider the artificial constraint of Twitter's 140-character limit. It initially seemed arbitrarily restrictive, but it forced people to be creative and concise in ways that revolutionized communication. New forms of expression were born: hashtags, threads, new levels of wit and pithiness. They became cultural phenomena that only seem mundane today because they’re so ubiquitous.
Or think of SpaceX, which faced head-on the physics, engineering, and economic constraints that make rockets insanely expensive to build, only to be discarded. SpaceX used these very constraints as the foundation for breakthroughs that have reshaped the entire space ecosystem.
We can also look to the defense sector: U.S. military strategies requiring accurate tracking and precision strikes to minimize unintended casualties led to the invention of GPS. These constraints imposed by military strategy not only enabled the development of specific solutions like GPS-guided munitions, but a technology that has become integral to our modern infrastructure.
This principle even extends into the arts. Janan Ganesh (incidentally, one of the most delightfully pithy writers of recent vintage) explained in a piece called, “Why Oasis won in the end,” how the lack of constraint has curbed artistic innovation:
Creative breakthroughs have tended to happen as rebellions against governmental, religious or academic rigidity. Hence Monet, and Johnny Rotten. Now that almost everything is permitted, there is correspondingly less frustration and desire to strike out in new directions.
Constraints, whether rooted in nature (like physics) or devised by humans (like laws), have sparked incredible advances spanning food security, health standards, government design (like the US Constitution!), reliable infrastructure, and on.
And sure, testing boundaries is a critical part of discovery and progress. But there's a difference between testing boundaries and disregarding them entirely. Those who disregard the rules just because they're inconvenient may think they’re unleashing potential, but in reality they’re just ruining the game for everyone and leaving others to clean up the mess.
Why a Culture of Accountability Wins in the End
Funny, the people most eager to remove accountability are often the ones who most need it. They mistake the absence of constraint for freedom, but what they're really choosing between is accountability versus chaos. Thomas Hobbes understood this centuries ago when he observed that life in the absence of rules and norms is "solitary, poor, nasty, brutish, and short."
Consider economics: The rule of law creates the predictable framework that makes long-term investment and innovation possible. You can't build a thriving economy when contracts are meaningless and property rights are arbitrary. Hobbes again:
In such condition, there is no place for Industry; because the fruit thereof is uncertain; and consequently no Culture of the Earth; no Navigation, nor use of the commodities that may be imported by Sea; no commodious Building; no Instruments of moving, and removing such things as require much force; no Knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continuall feare, and danger of violent death….
Venezuela’s drastic economic collapse is a recent example of what happens to a nation that’s abandoned legal accountability. The judiciary became an arm of the regime, paving the way for electoral fraud, human rights abuses, and major crimes – gutting the institutional safeguards that underpin economic stability and make growth possible. Venezuela's opposition leader María Corina Machado commented in a recent podcast interview: “[H]ow would anybody invest in a country that is absolutely in the last place in terms of rule of law…literally the last place, out of 140 countries evaluated around the world?” She has a point.
Or consider the consequences when accountability breaks down in war. Russia’s invasion of Ukraine, marked by deliberate attacks on civilian infrastructure and widespread atrocities, has not just cost it on the battlefield. It has cost it legitimacy: “Russia’s actions in Ukraine earned the nation pariah status, which will ultimately be disastrous for accomplishing its military objectives and could also have real long-term economic impact.” Even though Russia remains formally powerful, its global standing has cratered, sanctions have deepened, and its allies tread cautiously. The images from Bucha and Mariupol outraged the world and entrenched Russia's isolation.
It should go without saying, but following in Russia’s footsteps should not be a goal of the Pentagon. Yet Hegseth seems a bit too comfortable making light of rules and norms: pardons for convicted war criminals, contempt for rules of engagement, disdain for the Geneva Conventions, the sudden firing of the top military legal officers. As reporter Hafiz Rashid summarized, “It seems that [Hegseth] thinks that there is no problem with U.S. soldiers committing war crimes, as long as America is ‘tough.’” But you can win every battle and still lose the war, if you lose legitimacy.
And yes, of course rules and their enforcers can go too far. Many a dystopian novel has been penned about police states or over-engineered societies gone wrong (classics like 1984, Brave New World, and The Giver, for instance). Some of us might even remember the tyranny of the overeager hall monitor from grade school.
But that’s not what I’m talking about. When companies shrug off responsibility, they tend to collapse — or worse, position others to absorb the inevitable wreckage that follows. When states dilute or altogether disregard the rule of law, as convenient as it may seem at the time, they ultimately become unstable, hollowed out by corruption, violence, and fear. And it’s people who pay the price.
The "no ref, no rules" crowd will always be with us, convinced they're too important for rules. But the rest of us learned on the playground that the game is more fun, more fair, and more productive with accountability.
We'll always encounter leaders who want to play without referees. I suppose it’s up to each of us to have the courage to insist on better. After all, we figured this out when we were kids. We can figure it out as adults too.
What’s your experience with the "no ref, no rules" attitude in your workplace or industry? I'd love to hear from you.
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