Does size matter?

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Does the size/scale of an organization affect its ability to respond to market disruptions and/or technological changes??

Technical Leadership
Market Analysis
Marketing Strategy
John Kaestle
67 months ago

1 answer

0

Yes and no. The overall size of the org makes a difference if the governance is monolithic within that organization. Smaller companies and startups are better able to respond to disruptions as the time it takes to pivot or address the disruption or changes is reduced due to the more rapid decision making which is only possible with senior management closer to the action. That being said, there are many large companies, like Google and Facebook for example, which are structured to move faster (they move faster than a GE, but slower than a startup), even though they look monolithic externally, their internal flexibility and smaller teams allow them to address the disruptions more rapidly. There are many other factors as well, such as culture (plenty of smaller companies with rigid structures) and regulation (fintech and medical startups can't move as fast). So the short answer: usually, but not necessarily.

Chris Kalaboukis
67 months ago
Hi Chris, all agreed and good points! - John 67 months ago

Have some input?