Roger Martin (Leading into 2010) is correct that coordination costs are a major expense in large organizations.
However, downsizing is not the answer. The same work has to be done and the coordination costs between an organization and its outsourced suppliers are much higher than the internal costs were.
Downsizing only works if you cut down on the amount or types of business you do; it does not work if one tries to do the same amount of work with fewer people.
Sent to Washington Post