Scaling is about more than product

Posted by Bo Pedersen
on June 18, 2018

Investors love scalable businesses.

Matt Clifford calls founders going through the company builder Entrepreneur First ‘scale seekers’. 

Philosopher and mathematician Nassim Taleb introduced me to the concept of ‘convexity’.

The best investments leverages limited downside (lose your investment) with a disproportionately large upside (capture a global market), and economies of scale.

Naturally, in order to become a scalable business, you need a scalable product.

Scalable products are built once and sold n times at little or no incremental cost.

  • A book. Write once, sell n times.
  • A pop song. Write once, sell n times.
  • A mobile app. Write once, sell n times.

You get it.

But what about the organisation?

Your product might be super scalable, but if your organisation is not, then what?

Let’s look at how organisational scalability affects the following important areas of your business.

In scalable organisations…

  • ..Information flows freely and transparently.
  • ..Decision making is delegated to the front line.
  • ..Teams and people self-align to support clear goals.
  • ..Communication and collaboration is encouraged and enabled.

Does this describe your organisation? Or what if?..

  • ..information is siloed or is unavailable?
  • ..decision making is subject to lengthy approvals and oversight?
  • ..teams and people just follow orders without knowing what their purpose is
  • ..the organisation suffers from poor communication and lacks collaboration tools?

The answers are clear. If you’re not a scalable organisation, you will be slow, unresponsive, aimless and ineffective. 

Fortunately, we can all become scalable organisations by following a few simple steps.