Esko Kilpi on Interactive Value Creation

In a typical large organization everybody is a long way away from everybody else. As a result the individual perception of the world is narrow and confined to a small group of immediate acquaintances.

That did not matter in factory-type of settings because physical tasks could be broken up. Bigger tasks could be divided by assigning people to different, smaller, fairly independent parts of the whole. Hierarchies made sense as a way to modularize work. The worker did not need to communicate with many people. The downside was a lack of flexibility. Reconfiguring a hierarchy always created a mess for a long time. And if you had a lot of interaction going on in a hierarchical structure, with many steps going up and down, it was slow and prone to misunderstandings.

For intellectual tasks, it is much harder to find parts that make for an efficient division of labor. Intellectual…

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