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Cost != price. Organizational friction is a cost; in fact it is the dominant hidden cost. Organizations that grow past Coase's ceiling are paralyzed by intern
by FrankWilhoit 2mo ago
Cost != price. Organizational friction is a cost; in fact it is the dominant hidden cost. Organizations that grow past Coase's ceiling are paralyzed by internal friction. They become unable to execute any mission: all they can do is to simply be an organization, with all the overfamiliar toxic manifestations. Any kind of organization: commercial, political, academic. Boiled down, the insight is that friction increases faster than the number of moving parts.