Thursday, May 31, 2007

"I don't need you! I only need this chair. And maybe this stapler." (Paraphrased- TJ)

6) Economies of scale do not apply in regards to physical things. Creative and intellectual, yes.

Easy here. More people in the teams, more you need to supply them. Some need expensive tools. Each team member is unique and must be catered to in some regard. Sure, Post-It notes and staplers you can buy in bulk. But not a Quad-Quad G5 Power Mac with 16GB of RAM, 1.5TB of storage, and a 30" LCD monitor. Plus software. If none of that made any sense, it's a geek-out. Office space, phones, anything that a new member gets, it's always a onesy-twosy thing. No start-up really gets a bulk discount for ordering 300 Herman Miller Aeron chairs for a starting staff of 5.

Additionally, as a team grows, the "buying" of people (salary, bonuses) doesn't get cheaper with the more you "buy". The return is through creative ideas, smarter working processes, departmentalized work, and sharing of the workload. Essentially an increase in the bottom line.

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