In every industry and country there is a limit to the size of an effective organization. If employees essentially perform repetitive tasks, like assembly-line work or telemarketing, the maximum effective size is about 1,500 people. If employees are professionals, like consultants, accountants, doctors, lawyers, or teachers, then the maximum effective size is about 150. Larger sizes produce the pathologies of centralization, rising general and administrative costs, rigidity, and bureaucracy. And the only antidote is local unit autonomy: Decentralize or perish.
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