Newton's second law of motion is an interesting formula that seems to be applicable to how companies are operating
F = m * a
Simply put, given the bare bone formula there are 4 different combinations:
- High mass, high acceleration
- e.g. huge disruptive companies (1,000 x 10 = 10,000)
- High mass, low acceleration,
- e.g. huge conservative companies (1,000 x 1 = 1,000)
- Low mass, high acceleration,
- e.g. small growing companies (100 x 10 = 1,000)
- Low mass, low acceleration,
- e.g. small conservative companies (100 x 1 = 100)
As companies grow there is a positive correlation in how much resources they amass. There is an undeniable strength in number, but it also creates complexity that breeds processes and standardization. By default, an ever growing company will see an overall reduced velocity as they now have to solve growing internal problems that was once safe to ignore and external problems that multiply exponentially. The baseline of their impact will still be huge, but it's purely out of their mass alone.
Most companies that seek high returns will definitely aim to get themselves to the first model. But given varying circumstances in reality, different strategies have to be employed that utilize either mass or acceleration factors. If a company is helmed by people who are experienced or committed in handling the processes, an increase in mass is advisable. Vice versa, it might be more useful to focus on how fast the company can move when such veterans are nonexistent.