In order to understand flow we must first understand the current organisational theory, design and management in more detail. This can be best explained by exploring the relationship between our industrial past and our understanding of economics which has led to the theory of economies of scale, for which there are two main arguments:

1. The organisation design argument: specialisation and standardisation will lead to lower costs and greater productivity.
2. The savings argument: cost savings will be made through common IT systems, less buildings and fewer staff.

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