What is the difference between scale and efficency?


1 Answer(s)


Scale is all about adding new resources to get size - how big can the company get in terms of revenue - $100m or $ billion

Efficiency is all about how you can you increase revenue from your existing resources - by fine tuning them, adding processes, structure etc

A company needs both. During the early stages scale might be the focus, but once growth stabilizes efficiency will be the focus.