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ConceptCoordination Cost

Coordination Cost

A classic concept in organizational economics referring to the time, communication and process overhead incurred to coordinate work among different individuals and teams. It rises nonlinearly as organizational scale expands.

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Oct 17

Coordination cost is a classic concept in organizational economics, referring to the time, communication and process overhead spent coordinating work among different individuals and teams.

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Oct 17

As an organization grows in size, the number of communication paths grows roughly with the square of the headcount, and coordination costs rise non-linearly.

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