By Richard Faint · 31 August 2026 · 6 min read
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TL;DR
My daughter starts senior school this week, the move from primary school to a much larger organisation is a reminder that scaling is not just about doing more. As systems grow, they create specialisation, boundaries, hand-offs, processes and measures. Those things are usually necessary, but they make coordination harder and increase the distance between the way an organisation is designed and the way it is actually experienced by the people inside it.
My daughter starts senior school this week.
To her, this mainly means a new uniform, new friends, a bigger building, more teachers, more classrooms and the possibility of getting lost. To me, because apparently I am now incapable of observing any part of normal life without turning it into an article, it also looks like a lesson in organisational scaling.
Primary school is a small system. One teacher may know a child across all subjects and pastoral care. It does not need much of an integration strategy because most information is in the head of a single teacher. Then secondary school arrives. Suddenly there are departments, specialist teachers, form tutors, heads of year, pastoral teams, timetables, subject leads, IT systems and processes designed to make sure several hundred children are in approximately the right place at approximately the right time. The organisation has scaled, and scaling changes everything.
Small systems can run on people
Small organisations often look efficient because they barely need to be organised. Someone knows the answer, someone remembers why a decision was made. A primary school has that quality: the system is small enough that relationships, memory and proximity can substitute for formal coordination. The people involved can see enough of the whole to understand not only what is happening, but why.
This works extremely well until it does not. As organisations grow, the amount of information increases, the number of interactions increases faster, and eventually it stops working. You need structure, specialists, rules, processes and systems that allow people who do not know each other personally to coordinate their activity. Specialisation allows the system to do things a smaller structure cannot, but it also creates a new problem: the organisation must now connect the specialists back together.
How Specialisation Creates Departmental Boundaries
Imagine an episode of Yes, Minister in which every department is performing perfectly according to its own objectives while the country somehow stops working. Once we divide a system into parts, each part gains its own perspective, priorities and incentives. The division helps us manage complexity, but it also creates boundaries through which information has to pass, and every boundary creates an opportunity for context to be lost.
A secondary-school pupil might see six teachers in one day. The maths teacher sees the pupil struggling with algebra, the English teacher sees them unusually quiet, the PE teacher notices they are not joining in, and the form tutor notices they have been late twice. Each observation may look trivial in isolation, but together they may describe something important. The problem is that no individual necessarily owns the whole picture.
The pupil stays the same; where their context lives changes.
Small system: context stays together
- One teacher notices
Learning, behaviour and pastoral concerns are seen together.
- Connect the observations
Shared memory and personal familiarity provide context.
- Respond to the pupil
One person can see much of the whole situation.
Larger system: context must cross boundaries
- Specialists notice fragments
Maths: struggling. English: quiet. Form tutor: late.
- Hand over and combine
Someone must connect the observations and take responsibility.
- Respond to the pupil
The response depends on information surviving the hand-offs.
More specialist capability does not automatically produce a more coherent service. Coordination is the work of putting the person’s context back together.
This happens in businesses too. Sales, customer service and other functions each see one part of a customer. Each function can be rational from within its operations while still contributing to an irrational result at system level.
Why Cross-Team Handoffs Shape the Customer Experience
Organisations are usually designed around responsibilities, but reality tends to happen between them. A customer does not care whether their problem belongs to Product, Engineering, Support or Operations; they have one problem, while the organisation may have four queues. A school pupil does not experience a neatly designed pastoral architecture; they experience whether the right adult knows what is happening and whether they can get help without having to explain the same thing repeatedly.
This is where many scaling problems appear. Inside each department, everything may work reasonably well but the hand-offs fail. In the SOPs this may be a single sentence; those few words contain half the dysfunction in the organisation.
How Local Performance Targets Distort the Wider System
Once an organisation becomes too large to understand intuitively, we start measuring it. This is sensible. Schools measure attendance, examination results, behaviour, progress and departmental performance. The measurements help us see the system, but then we start managing the measurements and anyone who has ever seen The Wire can understand the effect of this!
Ackoff argued that improving parts of a system does not necessarily improve the performance of the system. Yet organisations spend a remarkable amount of time doing this. Sales can hit its target by selling things the business struggles to deliver. A school can improve one measurable outcome while inadvertently damaging something harder to measure.
Every department can become green on the dashboard while the overall experience becomes worse.
Processes appear for a reason
Process exists because memory and relationships do not scale indefinitely. Companies introduce governance, documentation, approvals and workflows to make behaviour repeatable when the organisation has grown beyond the point where informal coordination is reliable.
Problems begin when the process stops serving the system and the system starts serving the process. The challenge is that bad processes often began life as sensible ones. Something happened, a risk was identified, a control was introduced and the organisation moved on. Years later the original context has disappeared but the mechanism remains and becomes organisational archaeology.
The organisation chart is not the organisation
When we design organisations, we draw boxes and reporting lines. Everything looks orderly, but the reality is often very different.
My daughter’s experience of school will not be the organisational chart. It will be a series of interactions with teachers and other pupils, the experience is produced by the relationships between the parts not the org chart.
Customers experience companies in exactly the same way. They do not experience our operating model, they experience the seams between it, as do employees.
Scaling is not really about getting bigger
When businesses talk about scale, they often talk about doing more volume, but volume is only part of the problem. The harder problem is maintaining coherence as complexity increases.
My daughter will not think about this when she starts school. She will be trying to remember a timetable, work out where science is and solve the important question of who she is sitting with at lunch. However, watching the transition to senior school reminds me that scaling an organisation is not just about making something bigger.
Small systems can rely on relationships. Larger systems require structure. Structure creates boundaries; these create coordination problems. Measures simplify reality, process attempts to stabilise it, and somewhere in the middle of all those departments, targets and organisational charts there is still a person trying to navigate the system we designed.
Interactive simulation
What happens when a system scales?
Increase the size of the organisation, add specialist functions and change the quality of its coordination. The model is deliberately simplified: it is a way of exploring the argument, not pretending an organisation can be reduced to five sliders.
More people create more possible relationships and more information to coordinate.
Specialisation increases capability, but every new function creates another boundary.
How much context survives when work or information crosses a boundary.
Some process stabilises a large system; too much starts to create friction of its own.
Higher pressure encourages functions to optimise their own metric rather than the whole.
At this scale, informal coordination still does much of the work.
How the model works
The simulation is intentionally a model, not a claim to organisational physics. Specialist capability rises with functional depth but eventually gives diminishing returns. Coordination load rises with both organisational size and the number of boundaries. Context is lost multiplicatively across hand-offs. Process offsets some coordination load, but excessive process adds friction. Local target pressure can improve local scores while reducing overall coherence. The interesting behaviour is the interaction between those effects.