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Quantitative Finance · Glossary

What is Coordination cost?

Definition 21.2 The Desk and the Firm · Chapter 21 — Engineering Organisation Design

The coordination cost of an organisation design is the work of keeping teams in step across the dependencies between the services they own; the chapter measures it as the number of changes a week, to services that other teams’ services depend on, which those other teams must learn about, test against and schedule around.

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