Stage 4 Elaboration- Growth with Coordination emphasizes which practice?

• A. Use of informal systems to coordinate resources.
• B. Use of formal systems to achieve greater coordination through more efficient allocation of corporate and local resources.
• C. Eliminate headquarters staff to decentralize.
• D. Coordination decreases as units grow.

Answer: (B)

Growth with Coordination centers on putting formal coordination systems in place to align and allocate resources efficiently as the organization expands. When a company grows, informal, ad hoc coordination becomes unreliable and wasteful, so standardized processes, clear governance, shared metrics, and integrated information systems help ensure corporate and local resources are used where they’re most needed. This approach reduces duplication, harmonizes priorities across units, and supports scalable, coherent action between headquarters and operating units. Relying on informal methods, decentralizing too far, or assuming coordination naturally decreases with growth would undermine efficiency and alignment.