Companies and superlinear scaling

I am about 100 pages into Geoffrey West’s book, Scale, and am having a hard time not just skipping ahead to the parts about cities and companies.

scale

Cities, West says, scale superlinearly (aka increasing returns to scale) whereas companies scale sublinearly (aka economy of scale). Which is why cities typically last a long time, and companies (and animals, for that matter) typically die young.

What if you could structure your company to scale superlinearly? Is it possible? If so, how would you go about making that happen? Would you even want it to happen, or is it a good thing that companies “die” young?

Back to the book….

 

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Coherence through shared abstraction – Cognitive Edge

Scaling in a complex system is fractal, or self similar in nature. In effect we decompose to an optimal level of granularity then allow coupling and recouping of the granules to create new patterns all of which have a self-similar relationship to each other. One of the things we are doing with our adaptation of fitness landscapes within SenseMaker® is to allow the same source data to represent itself for different identity structures within an organisation in contextually appropriate ways. Nothing in a complex system is context free, everything is context specific.

Source: Coherence through shared abstraction – Cognitive Edge