How to Manage Scale, and Operate in Scaling Organizations

Managing Scale

In researching scale, I’ve seen it referred to as a beast, chaos, and a black art. Quickly scaling is the ultimate test for managers and company builders: In fast-moving companies with high stakes, can you operate effectively enough to build a strong, enduring organization?

The Scale Anticipation Fallacy

The logical first interaction with scale is anticipation. It seems to loom so close, that preparations should be made for it’s arrival immediately! This is a trap that leads to a lot of stupid behavior that could be avoided through some critical thought.

Managing Scale by Managing Complexity

One of the many interesting pieces about scale suggested by Gergely Hodicska was written by a veteran Facebook Engineer, Kent Beck. This post jumped out because while it was clearly about managing scale, it completely reframed the problem: Scale isn’t the problem — scale is the force that turns failures of complexity into problems.

Mathematic Models of Scaling Problems

Do you ever wonder why scaling up an organization causes such trouble? There are a few mathematical formulas that explain this clearly, and model the challenges that are to be overcome in order to scale successfully. I’m very grateful for this post by Adrian Colyer, suggested by Gergely Hodicska.

It does not.

Check out this model of Wait Time compared to Utilization:

Scaling Up Excellence

By far the most comprehensive resource on this list is Scaling Up Excellence, suggested by Mahesh Bhatia. It was written by two Stanford professors who have studied scaling organizations for the past ~10 years.

Manage Scale by Managing Bottlenecks

If your company is growing fast and you’re worried about scaling well, that means you’re likely to have customers waiting on you — Demand > Supply. So the faster you can deliver product successfully to customers, the faster you will grow!

How to Design an Organization for Scale

Scaling a company is a necessary evil in Ben Horowitz’ view. Fortunate though you are to be in a company that is growing and expanding, it means that everything is about to get harder. He wrote a great post about what must change to keep the organization from breaking down during growth.


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Never Enough

As my Father always says: “There’s always room for the best.” There’s always a better resource out there. These collections can always get better, and I hope that they do. If you can think of anything that was missed, I welcome you to share it.

If you liked this, check out other Editions of Evergreen:Building and Managing a Team:How to Find and Recruit the Team you Need
How Not to Hire like a Clownshow
Compensation Rules Everything Around Me
Why Employee Onboarding is holding you back
How to Boost Employee Retention
How Performance Reviews are being Reinvented
Secrets to Perfecting Organizational Communication
How to Manage Scale, and Operate in Scaling Organizations
How to Fire an Employee
What you actually need to know about Company Culture
How to Interview Prospective HiresStrategy and Competitive Advantage:How to Master the Craft of Strategy
Competitive Advantage: How to Build a Winning Business
The Power of Network Effects
How Cost Leadership Builds Powerful Businesses
Why the Best Brands Stand Out
Scale as Competitive Advantage
Barriers to Entry are Confusing
Flywheel Effect: Meta-Competitive AdvantageBuilding the Business:How to get good business Ideas: Mental Alchemy of Ideation
How to Choose the Right Business Ideas
Product/Market Fit: What it really means & How to Measure it
How to Failure-proof your business with Customer Development
How Strategy and Psychology Work Together to Perfect Pricing 
The Most Important Equations in Business - CAC (Part 1)
The Simple Math Behind Every Profitable Business - CLV (Part 2)
How Psychology behind Word-of-Mouth Works
The Secret Core of Every Successful Business--Distribution
The Most Important Lessons in Sales
Why Value Creation is the Foundation of Business
Why Value Capture is the most important idea you haven't read about
The Misunderstood and Underestimated Genius of AdvertisingHow to be a Great Human:How to Start a New Job: Handling Career Transitions like a Boss
How to Master the Discipline of Product Management
The Ancient Origins of Storytelling, and how to Apply ThemI've also written about How & Why we started Evergreen:How a prototype's failure created the next iteration
Mission & Method of EvergreenFollow me on Twitter: @EricJorgensonAnd Please... Join Evergreen.

Evergreen Business Fortnightly

Timeless Wisdom on Business Topics, created from the best resources suggested by our readers. Each week there’s a new topic and a new Edition of Evergreen Business Weekly. Become a member at Evergreen.instapage.com

Eric Jorgenson

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Read and write. Listen and speak. Think and unthink. Fixing the biggest broken market in the world at Zaarly. I am a Terrible Investor. Tw: @EricJorgenson

Evergreen Business Fortnightly

Timeless Wisdom on Business Topics, created from the best resources suggested by our readers. Each week there’s a new topic and a new Edition of Evergreen Business Weekly. Become a member at Evergreen.instapage.com