Coordination Costs
The overhead required for multiple people to work together effectively on shared goals.
Also known as: Collaboration overhead, Communication overhead, Team coordination
Category: Concepts
Tags: collaboration, productivity, teams, organizations, efficiencies
Explanation
Coordination costs are the time, effort, and resources required for multiple people to work together - beyond what they'd spend working individually. These include: communication overhead (meetings, messages, documentation), synchronization efforts (aligning understanding, scheduling), decision-making processes (reaching agreement), and handoff costs (transferring work between people). Fred Brooks observed that adding people to projects often increases coordination costs faster than it adds capacity - hence the 'mythical man-month.' Strategies to reduce coordination costs include: modular work with clear interfaces, asynchronous communication defaults, clear ownership and decision rights, good documentation, and appropriate team sizes. The goal isn't zero coordination - collaboration creates value - but optimizing the ratio of coordination cost to collaboration benefit. For knowledge workers, awareness of coordination costs helps: design better work structures, avoid over-meeting, and recognize when adding people may slow rather than speed work.
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