Luca Ottinetti’s company blog identifies the drivers of organizational costs and explains why they add significant complexity to the administration of the business. The costs associated with organizational alignment deal with two functions:  coordination and administration. Coordination costs include resources dedicated to facilitating information sharing, knowledge transfer, and communication.  These resources may comprise teams, committees, or formal lateral units depending on the complexity of the organization. Administrative costs include the top management functions for executive control and direction over…