Is collaboration destroying value at your company?

06.04.2009

You write that people overestimate the expected financial return for a collaboration project. Why? There is a natural optimism in management, and that drives a lot of it. They're often overshooting.

Why do some people underestimate opportunity costs? When companies preach this mantra that collaboration is good and more collaboration is better, then managers are looking for collaboration projects. But they should be looking for the best projects, and some may not be collaboration projects at all.

What are some of the overlooked costs of collaboration? These are the costs incurred in working across units -- problems like disagreeing over objectives, having conflicting goals. Or there is hoarding: People don't want to share information or customers. You have to spend time sorting it all out, and that leads to delays and cost overruns.

What role does IT play in this whole collaboration universe? When collaboration costs are high in a company, it becomes difficult to have a net collaboration premium. IT puts in place knowledge management databases, videoconferencing systems, online social networking -- electronic tools that are really .

If the cost of collaboration goes down a lot, then you will see the value shoot up.