“Running an organization is difficult in and of itself, no matter what its goals. Every transaction it undertakes—every contract, every agreement, every meeting—requires it to expend some limited resource: time, attention, or money. Because of these transaction costs, some sources of value are too costly to take advantage of. As a result, no institution can put all its energies into pursuing its mission; it must expend considerable effort on maintaining discipline and structure, simply to keep itself viable. Self-preservation of the institution becomes job number one, while its stated goal is relegated to number two or lower, no matter what the mission statement says. The problems inherent in managing these transaction costs are one of the basic constraints shaping institutions of all kinds. [p29]
…New social tools are altering this equation by lowering the costs of coordinating group action. The easiest place to see this change is in activities that are too difficult to be pursued with traditional management but that have become possible with new forms of coordination.” [p31]”
