Scott C. Beardsley, Bradford C. Johnson, and James M. Manyika

Managing for effectiveness in what economists call tacit interactions—the searching, coordinating, and monitoring activities required to exchange goods, services, and information—is about fostering change, learning, collaboration, shared values, and innovation. Workers engage in a larger number of higher-quality tacit interactions when organizational barriers (such as hierarchies and silos) don’t get in the way, when people trust each other and have the confidence to organize themselves, and when they have the tools to make better decisions and communicate quickly and easily.

These aren’t new management ideas; indeed, companies have always had workers involved in tacit interactions. But the ever-increasing growth in their number and value is driving companies to adopt such ideas more quickly and deeply.

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