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"If you make a product or provide a service, you invariably want more customers. If you’re a nonprofit, your instinct is to care for more people in need. And if you’re a city, you often have a very tangible incentive for your population to expand because federal funding is linked to size.
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Serving more folks, in turn, requires higher headcounts, fatter budgets and added infrastructure. And it brings a certain luster to those executives in charge. Who doesn’t want to lead a giant?
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Yet growth doesn’t always make sense. Sometimes, in fact, getting bigger is precisely the wrong thing to do.
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The headlines are replete with stories of organizations that have pursued higher volume at the expense of quality. (Think, for instance, of the rough patch Toyota hit in 2007.) Such behavior “confuses fat with muscle, and busy-ness with economic accomplishment,” Peter Drucker wrote.
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“Neither ‘big is better’ nor ‘small is beautiful’ makes much sense,” Drucker explained. “Neither elephant nor mouse nor butterfly is, in itself, ‘better’ or ‘more beautiful.’ Size follows function.”
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Done right, shrinking can be immensely beneficial. Like a fruit tree that needs to be pruned, some organizations must get smaller in order to grow the right way."

Trechos retirados de "Shrinking your way to success"