Friday, November 18, 2011

Coordination V

Good strategy and good organization lie in specializing on the right activities and imposing only the essential amount of coordination.

We should seek coordinated policies only when gains are very large.   There will be costs to demanding coordination, because it will ride roughshod over economies of specialization and more nuanced local responses.

The brilliance of good organization is not in making sure that everything is connected to everything else.  Down the road lies a frozen maladaptive stasis.  Good strategy and good organization lie in specializing on the right activities and imposing only the essential amount of coordination.

ACTION POINT: Seek specialization in the right activities and impose coordination only when essential and for the benefit of the entire organization.

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