It seems that most employees would work better with a supervisor or organization is very flexible–flexible hours, flexible processes, flexible deadlines. These are the intangibles that provides motivation for hard work. Too much flexibility has its downsides–
1) An antonym of flexibility is stability. Some people cannot handle making all of the decisions themselves and will use the “space” you are providing to worry about whether they are doing the right thing than actually doing the right thing.
2) Flexibility does not provide the boundaries that are needed when an employee or group wants to pursue an idea that might be “too” creative.
3) In terms of customer service, employees can get sloppy in their service to the customer if they know that on their side they have the flexibility to rectify the situation later rather than doing it right the first time. Customers expect it right the first time and only with an exception to have for it to be re-done.