Home > Sectors > Asset Production > How Manufacturing Businesses Balance Efficiency and Flexibility While Scaling

How Manufacturing Businesses Balance Efficiency and Flexibility While Scaling

Watch the short film

Play Video
Efficiency and flexibility pull in opposite directions as a manufacturer scales: standardisation versus adaptability, with credible research on both sides.

The case for standardisation

Jay R. Galbraith’s information-processing account of organisation design provides the strongest grounding for the standardisation position. Galbraith’s argument is that rising task uncertainty and interdependence increase the information-processing burden an organisation must carry, and that deliberate design responses — including standardised, self-contained processes that reduce the need for constant real-time coordination — are what allow an organisation to keep functioning as that burden grows. A tightly standardised process, in this view, is not merely a compliance mechanism; it is a way of reducing how much information needs to move between people and sites in the first place, freeing coordination capacity for the genuinely novel problems that still require it. Under this logic, a growing manufacturer that allows too much local variation is quietly increasing its own coordination burden at exactly the point where it can least afford to.

Larry Greiner’s research on organisational growth offers indirect support for the same position from a different angle: his account of organisations moving through a control crisis — the point at which growth outpaces what informal coordination can manage — is frequently resolved, in his own framework, by exactly the kind of formalisation and standardisation the efficiency case argues for. An organisation that has outgrown informal coordination has, in Greiner’s terms, a structural reason to standardise, independent of any argument about information processing specifically.

The case for flexibility

Erik Hollnagel, Robert L. Wears and Jeffrey Braithwaite’s research on the distinction between work-as-imagined and work-as-done provides the strongest grounding for the flexibility position, and it is not a minor counterpoint — it is a direct challenge to the premise that more complete standardisation reliably improves outcomes. Their central finding, drawn from safety research across complex operational environments, is that “things do not go well because people simply follow the procedures and work as imagined. Things go well because people make sensible adjustments according to the demands of the situation.” Under this logic, a standardised process is always, necessarily, incomplete — it describes a typical case, and a growing, diversifying manufacturing operation encounters more atypical cases, not fewer, as it scales into new products, new sites and new conditions the original standard never anticipated. The local adaptation that a standardisation-first view treats as a deviation to be eliminated is, in this account, frequently the mechanism actually keeping the operation functioning.

It is worth being precise about what this position does and does not claim. It does not argue that documentation or standards are worthless, nor that any local deviation is automatically justified. It argues specifically that the growing distance between a written standard and an increasingly varied real operation is not a solvable gap to be closed through ever more detailed documentation — some portion of that gap will always exist, because no document written in advance can specify the correct response to every condition a scaling, diversifying operation will eventually encounter, and treating every deviation as an error to be trained out risks removing precisely the judgement that handles what the document could not.

Why the disagreement persists

The disagreement is genuine rather than semantic because the two bodies of research are describing different failure modes, both real. Galbraith’s concern is coordination collapse — an organisation that cannot process the information volume its own growth has created. Hollnagel, Wears and Braithwaite’s concern is brittleness — a system so tightly specified that it cannot absorb the variation reality inevitably presents, and which breaks, rather than adapts, when conditions depart from what was anticipated. A manufacturer genuinely at risk of coordination collapse and a manufacturer genuinely at risk of brittleness look similar from the outside — both show inconsistent results across sites — but the evidence-backed response to each is close to opposite, which is precisely why leaders cannot resolve this question with a general rule and need to look at their own specific situation.

There is a further reason the two bodies of research are difficult to reconcile into a single position: they were developed to address different kinds of problem in the first place. Galbraith’s framework grew out of studying how organisations structure themselves to handle rising volumes of routine coordination — a question about capacity. Hollnagel, Wears and Braithwaite’s framework grew out of studying safety-critical environments where the cost of a system failing to adapt to an unanticipated situation could be catastrophic — a question about resilience under genuine novelty. A growing manufacturer experiences elements of both problems simultaneously, which is exactly why neither framework, applied alone, offers a complete answer — each was built to see one half of the picture clearly, at the cost of the other. Neither camp would claim its own research settles the question for an organisation facing both pressures at once, which is itself a useful piece of honesty for a leader to carry into the decision rather than expecting the literature to resolve it on their behalf.

What it means for a leader is that the question “should we standardise more or trust local judgement more” does not have a single correct answer supplied by the research — it has two correct answers depending on which failure mode the organisation is actually closer to, and the more useful question may be which of the two risks — coordination collapse or brittleness — currently looks more present in the organisation’s own recent experience.

Where this shows up

People working in manufacturers will probably recognise this pattern first. The wider Asset and Production-Based grouping and the other sectors page show how it presents elsewhere.

Questions worth considering

  1. Which currently looks more present in the organisation’s recent experience: coordination strain from too little standardisation, or brittleness from too much?
  2. Where people deviate from the written procedure, are those deviations treated as errors to be trained out, or as judgement handling something the document could not anticipate?
  3. How would the organisation tell which is which?

Your team is facing similar challenges?

We Do What Gets Counted — efficiency flexibility manufacturing scaling
The Riddle Ledger, a brand of Zoom Riddle

Subscribe to The Riddle Ledger

Perspectives are sent as they are published, with no promotional email, and you can unsubscribe at any time.

Sources

Jay R. Galbraith, “Organization Design: An Information Processing View,” Interfaces, 4(3), 1974, pp. 28–36.

Larry E. Greiner, “Evolution and Revolution as Organizations Grow,” Harvard Business Review, Vol. 50, No. 4 (July–August 1972), pp. 37–46; republished as an HBR Classic, Vol. 76, No. 3 (May–June 1998).

E. Hollnagel, R. L. Wears and J. Braithwaite, From Safety-I to Safety-II: A White Paper (University of Southern Denmark, University of Florida and Macquarie University, 2015).

You need a PDF version for a meeting?

Frequently Asked Questions

The research genuinely supports both positions for different underlying risks — Galbraith’s work addresses coordination overload, Hollnagel, Wears and Braithwaite’s addresses brittleness under unanticipated conditions — and neither literature claims the other is wrong so much as they describe different failure modes.
Both bodies of research would suggest this is less a binary choice than a question of where each is applied — but specifying exactly where the boundary sits would move toward the kind of implementation framework outside this article’s scope.
Recent operational history is often the most honest signal — an organisation experiencing frequent miscommunication and duplicated effort across sites is showing signs closer to coordination overload; one experiencing repeated situations where the written process visibly failed to fit reality is showing signs closer to brittleness.
The underlying tension between coordination and adaptability appears across many operationally complex sectors, but manufacturing’s combination of physical process standardisation and site-level variation in conditions tends to make the tension unusually visible and unusually costly to get wrong in either direction.
Greiner’s growth research would suggest scale changes the balance of risk over time — an organisation still running mostly informal coordination is more exposed to coordination overload as it grows, while one that has already standardised heavily and continues growing into new, unanticipated conditions becomes more exposed to brittleness — which means the more relevant risk can shift as the same organisation continues to scale.
Neither body of research supplies a specific test, but the pattern each describes leaves a different kind of trace — coordination overload tends to show up as recurring delay and duplicated effort between functions, while brittleness tends to show up as a written procedure visibly failing in a specific, describable situation it did not anticipate — and an organisation reviewing its own recent incidents for which pattern recurs more often is applying the research’s own logic, even without a formal test. Neither trace is difficult to find once a leadership team knows to look for it specifically, rather than treating every inconsistency as evidence of the same underlying cause.
Jay Galbraith argued that rising task uncertainty and interdependence increase an organisation’s information-processing burden, and that design responses such as standardised, self-contained processes reduce how much information needs to move between people and sites. On this view, too much local variation quietly increases coordination burden just when a growing firm can least afford it.
No. The research by Hollnagel, Wears and Braithwaite argues that a written standard describes a typical case, while a diversifying operation meets more atypical ones as it scales. The claim is that some gap between standard and practice persists however detailed the documentation, and that training out every deviation risks removing the judgement that handles what the document could not.