3 ms·
Law of Cost Centers: The output of complex organisation will, given time, become delineated arbitrarily between cost centers. Attempts to meet in the middle wil
by loopz 5y ago
Law of Cost Centers: The output of complex organisation will, given time, become delineated arbitrarily between cost centers. Attempts to meet in the middle will have to deal with asymptotic costs, inevitably overshooting diminishing gains from combining efforts.
In other words, with cost centers present, the whole becomes less valuable than its parts. Or stated another way: Some parts will, in presence of cost centers, inevitably take precedence from the whole, as well as other parts.