McKinsey Doesn’t Get It

McKinsey is trying to advise some of the biggest companies in the world on productivity without explaining to them how productivity works.  These are FC Corporate Architecture Ground Rule 1 and its logical consequence, Rule 8. 1.      The velocity of information is always increasing and faster information is cheaper information.  So, as information velocities are always increasing, the cost of information is always falling.  The result is the Information Cost-Velocity Curve (ICVC) which has dominated all organization structures through all history.  Fall off the Curve and you die. 8.         Companies must progressively substitute ever-cheaper information for other resources like land, labor, and capital.