rgw@icdattcwsm:~/Blog$ cat 2024-10-29-Labour.md

A popular misconception is that labor-driven businesses do not scale.

This is simply not true.

Legally, a corporation cannot exist without its Board of Directors and employees. It follows that, without labor, a corporation cannot exist.

That brings us to the question of what we mean by 'labor-driven'. Consultancies are often characterized as labor-driven because of the strong correlation between their revenue and headcount.

Correlation is NOT the same as causation. Otherwise, the government (the biggest aggregator of labor) would be the most efficient enterprise.

A better analogy to assess the role labor plays vis-a-vis technology in an enterprise would be to put yourself in the position of the head of a nation's defense/army.

Is it prudent to maintain a pursuit of personnel to replace tiring legs? And if so, does it help if you equip them with bows and arrows, instead of modern weaponry? And even if you do equip them with best-in-class weaponry, how quickly can the know-how of its use be assimilated into practice?

There are obvious reasons why modern warfare is big on drone-piloting.

How many jobs in your company have evolved from foot soldiers to drone pilots? This is the new efficiency metric of operational efficacy. While the past makes us conscious of patterns, only a fool would fight today's battles with yesterday's weapons.

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