Competing in a Flat World: Building Enterprises for a Borderless World

8. Follow the 30/70 Rule to Create Loose-Tight Organizations

How do you keep outsourced partners engaged in your work without owning them? Set a target of having more than 30 percent of their business but not more than 70 percent. This provides focus and commitment but still allows for flexibility and learning.

Topper the Trick Terrier is a remarkable dog (see Figure 8-1). With voice-recognition software, the mechanical dog can respond to voice commands in English, Spanish, and other languages. This little pup talks, spins around, stands on his head, and does other tricks. Whereas many toys that do multiple tricks have complex systems of gears and pulleys to get all the limbs in the right place, little Topper uses a sophisticated set of motors ...