Scaling Human Systems

“The change from a business that the owner-entrepreneur can run with ‘helpers’ to a business that requires management is a sweeping change. One can compare the two kinds of business to two different kinds of organism: the insect, which is held together by a tough, hard skin, and the vertebrate animal, which has a skeleton. Land animals that are supported by a hard skin cannot grow beyond a few inches in size. To be larger, animals must have a skeleton. Yet the skeleton has not evolved out of the hard skin of the insect; for it is a different organ with different antecedents. Similarly, management becomes necessary when an organization reaches a certain size and complexity. But management, while it replaces the ‘hard-skin’ structure of the owner-entrepreneur, is not its successor. It is, rather, its replacement.

— Peter Drucker

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