![]() We disagree with this position on the harmfulness of scale in today’s world. Testifying before Congress in 1911, future Supreme Court justice Louis Brandeis argued, “I think we are in a position, after the experience of the last 20 years, to state two things: In the first place, that a corporation may well be too large to be the most efficient instrument of production and of distribution, and, in the second place, whether it has exceeded the point of greatest economic efficiency or not, it may be too large to be tolerated among the people who desire to be free.” The art lies in marrying responsibility and velocity so that you are able to successfully capture the first-scaler advantage, while still developing and adhering to a strong moral compass. These challenges are real, but shouldn’t discourage us from blitzscaling. This can result in problematic corporate cultures, adversarial relationships with regulators, and questionable decision-making. These pressures are compounded by the fact that blitzscaling companies grow so quickly that they often become key players in society before they’ve had time to fully mature. In the worst case, they try to get big fast by any means necessary. In the best case, they do this by focusing relentlessly on building the business while also trying achieve broader social goals. The unfortunate truth is that for all the good that blitzscaling produces, blitzscaling organizations can be guilty of the same sins committed by other types of companies, and even face some inherent challenges even when trying to behave responsibly.īlitzscaling companies almost always operate in fiercely competitive markets where in order to survive and thrive, they need to outgrow their rivals. In an ideal world, blitzscaling organizations would embody all the virtues that society might desire from its businesses-a diverse and inclusive workforce, a strong sense of responsibility to shareholders and stakeholders, an ample supply of well-paying jobs, and executives who serve as moral role models and leaders of society. (This post by Reid Hoffman and Chris Yeh.) ![]()
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