Assets You Have But Don't Use
Most organizations have far more capability than they deploy. The constraint isn't capacity. It's coordination infrastructure.
When organizations hit constraints, the default response: hire more people, buy more equipment, expand facilities. Add capacity.
Most organizations aren't capacity-constrained. They're coordination-constrained.
The capability already exists. It's just not accessible.
"You don't need more capacity. You need coordination infrastructure."
30%
more capability than they deploy
Consistent across industries. 20-40% range, averaging 30%.
Independent pharmacies have excess capacity. Each can fill more prescriptions than they receive.
Meanwhile, CVS runs at maximum utilization, turning customers away.
The independents have capability. CVS has coordination. Neither has both.
SKILL LATENCY
The engineer who's also a designer. The sales rep who speaks Mandarin. Rigid roles trap unused skills.
NETWORK LATENCY
Sales knows what customers need. Product never hears it. The nodes exist. No signal flows.
TEMPORAL LATENCY
Restaurants empty at 3pm while catering goes unfilled. Capacity exists. Demand exists. They don't meet.
SPATIAL LATENCY
Equipment underused in hospital A, scarce in hospital B. Assets owned but not positioned for value.
In 1937, economist Ronald Coase asked why firms exist. His answer: transaction costs. It's cheaper to coordinate inside than contract outside.
What happens when coordination costs approach zero?
Firm boundaries dissolve. The independents can coordinate like a chain without being a chain.
MARKETPLACE MODEL
Uber, Airbnb, Upwork
Extracts value from coordination. Platform captures margin. Providers commoditized.
INFRASTRUCTURE MODEL
The emerging alternative
Enables coordination without extraction. Providers retain value. Competition on quality.
VISIBILITY
See what exists. Map skills beyond job descriptions.
ACCESSIBILITY
Make capability findable. Build search infrastructure.
ACTIVATION
Remove friction. Fewer approvals. Simpler logistics.
FEEDBACK
Learn from activation. Build intelligence over time.
Particle State (GPI 7-10): Maximizes latent capability by preventing coordination.
Field State (GPI 1-3): Minimizes latent capability by enabling coordination.
Before you add capacity, audit latency.
Before you hire, coordinate. Before you buy, activate.
The capability you need probably already exists.
You don't need more. You need to use what you have.
From the upcoming book
The Growing Pains Index
Chapter 9: What You Have But Don't Use
Measure the GPI dimensions that trap capability. See where coordination infrastructure is missing.
TAKE THE GPI DIAGNOSTIC