The Expansive Effect of Sales and the Risk of the “Accordion Effect”
Growth in sales often triggers an automatic increase in headcount. But not all growth is temporary; sometimes it’s structural and requires resizing the organization. The risk lies in the “accordion effect”: expanding staff in good times and contracting (through layoffs and costly inertia) when sales decline. The key is vision: identifying whether growth is real and sustainable, analyzing it methodically, and deciding with rigor before expanding structures.