Effective communications requires both cooperation and adaptability on the part of home office and subsidiary executives. Each of these executives walks a thin line between chaos and rigidity. Systems are absolutely necessary to provide the possibility of integration and comparison across the international network. On the other hand, a rigid adherence of standardized and comparable information but actually are nothing of the sort.

All data reported by subsidiaries should meet the following test: Is this information necessary to help manage the subsidiary or the broader worldwide operation? Is the information worth the cost of collection? What is the cost of collection?

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