Why do we believe in economy of scale?
Af Professor John Seddon Managing Director Vanguard
„Scale economy… is a concept that should be discarded.‟
H Thomas Johnson, Professor of Accounting, Portland State University
I was motivated to write this by a recent experience. I bombed at a presentation to a group of county council chief executives. It was just before the election. I had started by remarking on my disappointment at the Conservative Party‟s hiring of the people behind New Labour‟s public-sector factories; Sir Peter Gershon and Martin Read were now telling them that billions could be saved by sharing services across Whitehall. I asked the chief executives to help me by explaining why it is that we believe in economies of scale. After some poor shots at responding, I realised that they did not know. I made the mistake of describing this as „pathetic‟. An error, I know, but that is how I felt. These highly paid executives are spending large amounts of money on creating huge public-sector service factories without any conscious rationale for doing so… Læs hele artiklen her: Why do we believe in economies of scale?