The Idea in Brief

To deal with an ever more complex environment, many companies increase their complicatedness, adding new coordination procedures and structures.

This exacts a heavy price. Managers in the most complicated companies may spend 40% of their time writing reports and up to 60% of it in coordination meetings—leaving their employees struggling to figure out their priorities.

A better response is to create an environment in which individuals cooperate to develop solutions on the ground.

Managers Can Do This by Applying Six Rules

Improve understanding of what coworkers do.

Reinforce the people who are integrators.

Expand the amount of power available.

Increase the need for reciprocity.

Make employees feel the shadow of the future.

Put the blame on the uncooperative.

Companies face an increasingly complex world. Globalization and technology have opened up new markets and enabled new competitors. With an abundance of options to choose from, customers are harder to please—and more fickle—than ever. Each day competitive advantage seems more elusive and fleeting. Even if you can figure out the right approach to take, what works today won’t work tomorrow.

A version of this article appeared in the September 2011 issue of Harvard Business Review.