Search query: "Coase Ceiling"

12.2 Value chain, or rather profit chain?

Last Edited by Ronald van den Hoff on 2/11/2014 2:34:18 PM
Value chain: it seems like such a nice concept. Yet, it is “old school.” In this so-called value chain, people, means, and time are pressed through and between organizations with just one single purpose: that there will eventually be someone who is willing to pay for the service or product for a higher price than your cost price. The manufacturers higher up in the value chain, and the suppliers who are lower down in the same chain, all perform the same trick. As long as the buyers in the valu..
Read more

2.3 An organization is a simple pyramid

Last Edited by Ronald van den Hoff on 2/11/2014 2:30:41 PM
Organizations always consist of people making or doing something other people wish to pay for because paying is simpler than making or doing it yourself. Or, it is impossible to make it yourself, due to a lack of certain production tools. Organizations organize processes, coordinate the people and means, and communicate to make those products and services, otherwise they do not work. Organizations always have a structure and hierarchy. There is a boss or a manager. A manager kno..
Read more

2.4 Grow to grow, until you no longer fit reality! But who really cares?

Last Edited by Ronald van den Hoff on 2/11/2014 2:31:06 PM
It may sound strange, but growth was, for many organizations, a way of life. Managers fought to postpone the reaching of their Coase Ceiling, or to avoid necessary changes. We even created a word for this unlimited growth: “globalization.” It was, often, not natural growth, but growth from “buying” market shares. The newly-bought corporations were quickly integrated in the existing organizations, and the hunt for new takeovers started all over again, with, as a management mantra, “the takeove..
Read more

3.9 New leaders, new organizations

Last Edited by Ronald van den Hoff on 2/11/2014 2:32:26 PM
Between those Internet tribes – or “swarms,” as Martijn Aslander labeled them in his book, Easycratie – we need daredevils: people who dare to innovatively steer and interpret for traditional organizations. And in such a way that the employees in the established or..
Read more

12.13 What do the guru's say?

Last Edited by Ronald van den Hoff on 2/11/2014 2:34:32 PM
In his book, Theory of Business, Peter Drucker (1994) explains that – in our fast-changing world – traditional ways of organizing (arranging) lead to a corporate structure that can no longer move along with external dynamics. The preservation of the structure has become an objective in itself, and has drifted far ..
Read more