Thursday, November 17, 2011

Coordination IV

Coordination is costly, because it fights against the gains to specialization,

On the other hand, the potential gains to coordination do not mean that more centrally directed coordination is always a good thing.  Coordination is costly, because it fights against the gains to specialization, the most basic economies in organized activity.  

To specialize in something is, roughly speaking, to be left alone to do just that thing and not be bothered with other tasks, interruptions, and other agents' agendas.  As is clear to anyone who has belonged to a coordinating committee, coordination interrupts and de-specializes people.

ACTION POINT: Understand the need and time for specialization.

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