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?