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So it is some irony that its scale has become such — bigger operations may have the thick end of a thousand lawyers in-house — that firms are forming operations teams to manage the legal teams. | So it is some irony that its scale has become such — bigger operations may have the thick end of a thousand lawyers in-house — that firms are forming operations teams to manage the legal teams. | ||
===Scale and rent=== | |||
It could be argued, and the JC does argue, that the yen for scale in modern commerce is driven not by an aspiration for economy, much less too save a customer money, but for the opportunities it affords to extract rent. However many thousands of organisations make you the financial services sector; however many hundreds of thousands are employed, directly or indirectly servicing those organisations, there are orders of magnitude more putting their hard-earned dollars into that system in the hope of some kind of return. | |||
The point where scale becomes really exciting is where the cost of rent extraction, per dollar, is so minimal that the hosts — beg your pardon, customers — don't even notice it. Scale then becomes free money; you don't need to reduce your rate because the customers will pay it anyway. | |||
This is why hedge fund managers with 5 billion AUM are happier than manners with 500m. | |||
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*[[Redundancy]] | *[[Redundancy]] | ||
*[[Scale paradox]] | *[[Scale paradox]] | ||