In cybernetics, the first kind of people are devoted to System 1, and the others are devoted to Systems 2-5. Any functioning organization has all 5 systems.
Imagine a school with only teachers and no administration. Who hires the teachers, who collects tuition, who schedules classes? Even if the teachers could do those things, now the teachers have to do the administration, which takes away from teaching--and the teachers quickly find (like any new business owner) that most of their time is spent on 'overhead' and very little on teaching itself.
The Iron Law is generally viewed as undesirable, because the 'doers' don't want the 'managers' to control the organization--this is how everything becomes enshittified. At best you have benevolent managers who are extremely sympathetic to the doers and act accordingly, but this is generally short-lived and depends on the organization hiring those benevolent managers. So the big question is, how can we ensure that the values of the organization (System 5) remain aligned with the values of the doers?
The doers can fire the system 5 people.
The doers can't remove the bureaucracy-focused people, because doing so would run counter to Pournelle's Iron Law; it's like crossing the streams. Let's instead replace bureaucrats with AI, since the same pressures that drive bureaucracies toward self-preservation might instead push AI systems toward AGI .