Wiring The Winning Organization pt. 2 | Gene Kim
Dev Interrupted
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Example of Coordination Costs in Large Organizations
In large organizations, even simple tasks can become extremely challenging due to high coordination costs. An example of this is seen in a fictitious telco's attempt to implement a simple opt-in service, which would require crossing 40 different teams across four customer channels, CEO support, daily war room meetings, and a nine-month timeline, with a 20% chance of success. The estimated cost is 20 million dollars, reflecting the significant effort and resources needed due to organizational complexities. This highlights how organizational wiring can make seemingly simple tasks require heroic efforts, vividly demonstrating the impact of high coordination costs.
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