Evading Coordination Tax


Picture this: you've a breakthrough strategic initiative tied to one of your company-level goals that impacts 10 teams across two product groups, as well as your GTM organization.

These are all busy, overloaded teams. Those same 10 teams are also juggling five other initiatives. And the business-as-usual whirlwind.

You pull this work into the backlogs and roadmaps for all these teams. Fractional slices of people across the teams will work on this. Which means it will take a while. Leaders involved with all these teams will need to be involved to coordinate.

How fortunate we are to have mechanisms in place to coordinate all of this. (Think PI/Quarterly planning, JIRA Align, Product Owners with their different backlogs, Solution Trains, and a complex network of cascaded OKRs)

Sound familiar? This is what I call the coordination tax—that hidden cost of trying to innovate across organizational boundaries that weren't designed for the outcomes you're pursuing.

Read How to Evade Coordination Tax By Organizing Around Outcomes for a case study of how we evaded coordination tax when developing the Gillette Exfoliating Razor and a set of suggested coordination tax evasion ideas for you to consider.

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