Organizational costs: old vs. new

Corporate organizations that predate the Internet were built based upon a military or “span of control” model. While it evolved over thousands of years from Roman times, there have been limited changes, even with the introduction of telecommunications and computers. The foundation was that a manager/leader could directly manage a specific number of direct reports. This was due to the need to gather information, understand the bigger picture, and provide leadership to the team. From the Army website, here is the traditional Army organization.

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