Organizing Around Outcomes to Evade Coordination Tax
Yuval discusses how companies can avoid the hidden costs of coordination tax by organizing around outcomes rather than traditional structures. He provides a case study of how Gillette successfully created a virtual value center for their exfoliating razor project, leading to faster development and market entry. Key strategies include focusing teams on strategic initiatives, optimizing for work flow, and being flexible with roles and processes. Yuval emphasizes the importance of making conscious trade-offs and improving focus to enhance innovation and productivity within organizations.
00:00 Introduction to Coordination Tax
00:08 The Coordination Challenge
01:35 A New Approach: Virtual Value Centers
02:42 Prioritization and Trade-offs
03:19 Success Story: Gillette's Exfoliating Razor
04:18 Optimizing for Flow
05:08 Overcoming Constraints
07:21 Practical Interventions
09:25 The Goal: Conscious Focus
10:21 Conclusion: Organizing Around Outcomes
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