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Jim

Well argued. The obvious question is why haven't more (any?) companies done what you suggest?

aje

Thanks Jim. I tried to suggest why in the article, but it's probably a combination of bureaucracy, cultural aversion to discussing money, and the inherent difficulty of measuring productivity.

The fact that so many large companies have separate business units is a way of addressing this, and obviously the smaller the company the easier it is to measure.

Ultimately it's a transaction cost argument - I'd say that the efficiency gains are there but people rarely have the incentives or knowledge to implement the changes required.

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