The growth of outsourcing and offshoring of complex work led to innovative activities that require coordination in the cultural, geographical and legal boundaries. If this coordination is wrong, companies may find themselves need to make millions or even billions of dollars change. The authors show how problems often occur at the boundaries between the organization and activities, with the probability of the problem increases with the complexity of the work. Then they give instructions on how to define the boundary. In particular: What events merge / split, which should be in-sourced or external, and that on land or at sea. After the boundaries were established, the authors explain how they can be stretched by the rules, technology and people. However, the complexity of the problem makes midcourse corrections are likely. Managers need to anticipate and adapt their processes to reduce risk and, ultimately, cost. "Hide
by Jason Amaral, Edward J. Anderson, Jr., Jeffrey Parker Source: MIT Sloan Management Review 10 pages. Publication Date: January 1, 2011. Prod. #: SMR375-PDF-ENG
Related Case Solutions & Analyses:
Trade Restrictions and Hong Kongs Textiles and Clothing Industry
Nectar: Making Loyalty Pay
Hedging Currency Risks at AIFS
Motorcowboy: Getting a Foot in the Door B
Currency Crises in the United Kingdom and Hong Kong
Ramesh Patel at Aragon Entertainment Limited
Northern Forest (F): Policy Alternatives
Note on the FDReview Process for Medical Devices
Set Up Remote Workers to Thrive
Sustainability Challenges in the Shrimp Industry (A)
