Ben Casnocha highlights a problem with businesses that try to do too much:
The theory behind outsourcing is that it enables specialization: you do one thing really well and let others do the rest. Some of the more frustrating customer service experiences happen with entities where there's limited outsourcing and specialization. As I've written before, airlines do way too much. They market their brand and flight routes, they handle reservations and bookings, they maintain aircraft, they deal with luggage. More airlines should do as they do with their regional jet business: focus on something and outsource the rest. In the regional jet example, the big airlines handle reservations and ticketing and outsource the actual flying of planes.
Arnold Kling applies this theory to education:
In the legacy education model, teachers combine coaching, feedback, and content delivery. By coaching I mean advice, guidance, and encouragement. Feedback includes formal grading as well as informal praise and criticism. Content delivery includes lectures and reading assignments. Perhaps the key to radically changing education is to break up those functions.