An enlightening examination of the economic fundamentals of efficient organizing, focusing on governance and avoiding organizational waste in all forms. If there are two alternative ways to perform a task, why not choose the one that generates less waste? In Efficient Organization, Mikko Ketokivi and Joseph T. Mahoney take a practical and decision-oriented approach to organization design and governance. They first examine contracting and relationships within and across organizations in addition to special topics such as non-profits, public organizations, and stakeholder analysis. They then identity and discuss the main organization design and governance decisions and challenges relevant at the founding of the organization, during its expansion, and at maturity. Ketokivi and Mahoney maintain that the focus of efficient governance is about establishing the credibility of the organization in the eyes of its most important stakeholders. Establishing and maintaining credibility sustain viability of the organization. Highlighting the importance of securing cooperation across individuals and organizations for mutual value creation, this book provides tools that decision-makers can use in their own organizations.
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