42nd Street Company (#42stc)

On organizational sense and value

By on April 16, 2015

I think of an organization as something that makes sense together – more sense together than apart.

One significant, but not in itself sufficient, aspect of making sense is creating more value together than the parts can do alone.

Extra value created:

  • If ORG=P1+P2+…+PN, then …
  • EXTRA_VALUE = VALUE(ORG) – SUM(VALUE(Pi))

The more extra value, the more sense.

Our job is to create organizations where everyone is able to perform and optimally contribute to creating value for the organization.

(The value of something is the cost of not having it – still thinking about this – if you know a useful reference, let me know)