Why Mid-Market Leaders Need to Rethink the Economics of Scale

I believe they become more valuable when they begin with enterprise value.

The AI-to-EBITDA Conversion

That perspective has led me to evaluate every AI initiative through a single lens: its contribution to EBITDA.
Technology investments should not be evaluated by the number of pilots completed or tools deployed. They should be evaluated by Outcome-Based Innovation.

• Has revenue per employee increased?
• Has the proposal process become more efficient?
• Have customer onboarding cycles accelerated?
• Are leaders spending more time coaching and less time coordinating?
• Is the business becoming more profitable because work flows more effectively across the organization?

These are the questions that connect innovation directly to enterprise value.

McKinsey reports that integrating generative AI into workflows offers a new productivity frontier, with research showing significant gains in efficiency in key technical and service functions, ranging from 20 to 45 percent [McKinsey & Company. (2024, February)], provided organizations scale these use cases beyond the pilot phase. Those gains are realised not simply by automating individual tasks, but by thoughtfully redesigning how work moves across the business.

Why the Mid-Market Wins the Execution Game

This is where I believe mid-market companies are uniquely positioned.

Their leadership teams are often closer to customers, employees, and day-to-day operations. Decisions can be translated into action quickly. New operating models can be introduced with a high degree of organizational alignment. These qualities create an environment where innovation and execution reinforce one another.

“Sustainable growth is about creating the conditions for people to make better decisions, execute with confidence, and build on what the organization has already learned.”

If there is one lesson I have carried throughout my career, it is that sustainable growth is about creating the conditions for people to make better decisions, execute with confidence, and build on what the organization has already learned.

The economics of scale continue to evolve.