Scale
Akira Morita of DesignKompany asked if I could write down some thoughts on scale, since I’m not available to be a panelist at tomorrow night’s event. Here they are:
Scale is an interesting thing - for some it is almost a holy grail while for others it is a dirty word. For the former, scale has connotations of large-scale impact, the ability to change systems and disrupt the status quo. For the latter, scale has connotations of bloated structures, excessive executive compensation, and being out of touch with the communities and consumers that are being served. If it isn’t yet obvious, I’ve primarily looked at this from a non-profit perspective, but I think these impressions are just as salient in the traditional business world.
In framing the question of scale, one key distinction is between “scaling out” and “scaling deep”. Scaling out is what people typically think of when discussing scale, and it means getting larger geographically - serving more people and moving from local to regional to national to global. Scaling deep is an approach favored by folks who believe that social innovation is inherently linked with the community in which it resides - and therefore geographic scaling does not make sense. In the non-profit realm, scaling deep would mean taking your knowledge of a community and offering additional services related to mission. In a traditional business it might mean serving existing customers with new products. Put simply, when Starbucks adds new stores they’re scaling out and when they start selling bagels along with their coffee they’re scaling deep.
There are a multitude of voices around the issue of scale. As the internets and other tools keep bridging geographic and cultural boundaries, it becomes easier and easier to reach audiences. Kevin Kelly’s concept of “1,000 True Fans” resonated with niche businesses well beyond the artist and musician communities, and gives a wonderful blueprint for becoming successful in creating a lifestyle business.
One of my favorite businesses is B’s Barbecue in Greenville NC, where they do no advertising, don’t even have a telephone, and serve food until they run out each day (usually around lunchtime). I have a great love for indie bands, filmmakers and artists and much of the stuff that resonates most fully for me will never find a mass audience. However, I really wish that it would, and am glad when it does. For those who equate scaling out with selling out, I would direct you to Dave Eggers’ great rant against the phrase and concept of selling out from 2000. I would also point to his work growing McSweeney’s and the 826 charities as great examples of things that were built to scale out and have done so in a smart, measured fashion with a continued focus on mission.
Discuss.
