Curated Resource ( ? )

Why Big Organizations Are Broken

Why Big Organizations Are Broken

my notes ( ? )

In Ronald Coase's The Nature of the Firm ... the function of a firm was to reduce transaction costs, especially information costs, and that firms would grow until the increase in organizational costs canceled out efficiency gains...


Today, however, we live in an information economy. Competitiveness is no longer determined by how efficiently we move around men and materiel, but in how we connect to informational resources... Technology has minimized transaction costs, while organizational costs have become a heavy burden. Nimble startups can access access manufacturing resources, talent, financing, computing power and just about anything else you can imagine and still be price competitive with the big guys...


Now that access to resources has become nearly universal, leadership is more important than authority. So we need to shift our mental models from getting people to do what we want, to inspiring them to want what we want.

Read the Full Post

The above notes were curated from the full post www.digitaltonto.com/2015/why-big-organizations-are-broken/.

Related reading

More Stuff I Like

More Stuff tagged organisation , leadership , hr , coase

See also: Digital Transformation , Change & Project Management , Business

Cookies disclaimer

MyHub.ai saves very few cookies onto your device: we need some to monitor site traffic using Google Analytics, while another protects you from a cross-site request forgeries. Nevertheless, you can disable the usage of cookies by changing the settings of your browser. By browsing our website without changing the browser settings, you grant us permission to store that information on your device. More details in our Privacy Policy.