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I'd say the risk management is bigger than that. If you have 10 customers and cock something up, that's 10 people affected. But with a million customers, the sa
by lopmotr 9y ago
I'd say the risk management is bigger than that. If you have 10 customers and cock something up, that's 10 people affected. But with a million customers, the same cock-up causes 100,000 times as much damage and might cost 100,000 times as much money. So you can spend something closer to factor more to reduce the likelihood of it happening by up to 100,000 times.
- john_moscow 9y agoI don't think the only side effect of this type of inefficiency is increased costs. I would love to see some scientific research on it, but my hunch from working in overstaffed companies suggests that if you don't let people self-actualize through taking responsibilities and putting their ego into the problems they solve, they start self-actualizing in office politics, creating a toxic environment and ultimately making the company incapable of smart decisions. Modern work culture does a pretty good job hiding it behind a thick layer of company values, virtue signalling and multiple-page integrity policies though. Besides, you can actually mitigate the cock-up risks without going crazy on your head count: have focus groups, beta testers, roll out updates gradually, have a clear separation of layers and a mechanism to roll back a breaking change, etc.