Tag: scale

Posted on

Don’t scale up — scale right

There are no factories in the living world. Or at least if there are, they are very well camouflaged. 

Humans, by contrast, are very attached to factories. By reducing variation and tightly managing the handover between every step of the process – in other words, the relationships – assembly lines can be optimised for throughput.

Profit is often linked to throughput. Both in terms of the per-unit mark-up on a manufactured item, and in terms of dividing fixed costs, the more you make the more money you make. 

And so standardisation becomes the driving factor. Standard inputs, standard processes, uniform outputs. Each variation brings costs and lowers profits. 

Looking out across the understory here at Hazel Hill Wood, I see a certain degree of standardisation. The only plants I see are birch, holly, Douglas Fir, bracken and bramble. But go to a different part of the wood and the variation and balance of species will be different, depending on the specific variations of that location. In each location, the wood finds the best way it can to grow harmoniously. And in each location, that is slightly different.

The regenerative designer seeks to work with that specific variation, not because of some nostalgia for smaller scale construction, but because they recognise the greater potential value that can be unlocked from working with variation. 

Variation does not work at scale. When large teams need be kept up-to-date and coordinated around changes, then the admin overhead quickly balloons. 

All this points towards construction models built around smaller, agile teams—able to turn the specific variations of place into an advantage. Creating designs that are more harmonious (and therefore with fewer hidden costs). And unlocking local, positive feedback loops that strengthen the local economy and ecology. 

If your goal is throughput, scale up. But if your goal is to maximise value across business, ecology and community — then find the scale that lets all these systems flourish.

Scale up for throughput, but scale right for thriving.

Posted on

On scale, specialisation and life beyond pins

One of the commonly-cited benefits of scaling-up an operation is to enable individuals to specialise

Adam Smith famously argued that a pin factory, where each worker focused on specific step of the pin-manufacturing process, far more pins could be made than if each worker made whole pins on their own. 

This example has become one of the key doctrines of classical economics. But I find the example disingenuous. 

Firstly, because it is not like before Adam Smith came along there were halls full of pin makers unproductively making pins on their own. More likely, there were people who could make pins — and they could also make a host of other ironmongery — because they skilled in metalwork and a broad range of related skills. 

Life doesn’t just need pins. 

Second, his pin factory only works under a specific set of conditions. 

To make the most of each specialised worker, there must be no bottlenecks from one step to the next. Workers must work in shifts to maintain flow. There can be no variation in output. Input materials must be reliably supplied. Environmental conditions must be tightly controlled. And there must be a constant supply of customers, all buying pins.

But meeting all of these requirements, this now large-scale enterprise starts to exert a gravitational pull of its own. It shapes when, how and for how long people work. Like a giant magnet, supplies of iron are sucked into it. And it shapes what people consume — more pins. 

Scaling up does enable specialisation. And specialisation can increase productivity. But we mustn’t leave the wider costs of specialisation out of the denominator on the productivity equation. 

The regenerative designer asks, not how can I scale up, but how can I find the scale of operation that enables the most parts of the system to benefit?

Posted on

Absurd fruit salad

My recent food harvesting metaphor keeps on bearing fruit!

I arrive at a workshop to see a buffet of fruit.

Tasty, but I wager none of it is local and most only half of it is in season.

So what we have is a system that is very good and delivering out of season fruit from far away while local, in-season fruit wilts on the trees.

If you were to start from a blank sheet of paper you wouldn’t design this. 

A system that is efficient and scaled up in every step. 

And absurd in its outcome.