I don't think bureaucracy is bad per se -- it's an inevitable development in large organizations. Or rather, not inevitable, but better than the alternatives. Bureaucracy, with its attendant paperwork, procedures, and audit trails, retards the growth of personal fiefdoms and makes individual parts of a larger organization behave more like each other. It also retards forward progress, but I think that's part of the cost of having a large organization. Big ships are slow to turn.