The Special Case of Diseconomies of Scale
Last Updated on 12 May 2025 at 11:03
Interestingly, there is a point where growing bigger can even increase per-unit costs, known as diseconomies of scale. This phenomenon can be counterintuitive because economies of scale suggest that larger organizations, due to their size, should have lower per-unit costs.
However, the reality is different.
Why ?
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Elena Debbaut is a strategic execution expert to boards and executive teams. She leads and advises on complex transformations when governance barriers, internal politics, or structural fragmentation prevent organizations from executing critical decisions.
Specialities:
• governance-constrained transformation
• operational restructuring
• strategic recovery & execution