Headcount grew 30%. Output grew 12%.

Adding people to a busy team rarely adds proportionate capacity, and the reason usually sits in the arithmetic, not the attitude.

By Steve 5 min read
Abstract bridge artwork for Headcount grew 30%. Output grew 12%.

A firm ends the year with thirteen people where it started with ten. Payroll is up by roughly a third. Delivered output, jobs completed, projects shipped, cases closed, is up by around a tenth. Nobody is slacking. The new hires are competent and busy. The founders are busier than they were before. The instinct is to look for a performance problem. Usually there isn’t one. The gap between headcount growth and output growth is a structural property of interdependent work, and it shows up reliably enough that it is worth…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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