Final answer:
Option B. Co-locating staff for a project typically leads to reduced team friction, increased management by wandering around (MBWA), and reduced travel time. It may not always reduce overhead costs as this depends on the specifics of the project and resource allocation.
Step-by-step explanation:
Co-locating staff for a project is a strategy with multiple benefits, such as reducing team friction, enhancing management by wandering around (MBWA), and decreasing overhead costs. When a team is co-located, members can communicate more efficiently, leading to improved collaboration and quicker conflict resolution, hence reducing team friction. Moreover, co-location can also increase MBWA since managers and team leaders can casually walk around and engage with the co-located team with ease.
Concerning costs, although co-locating might reduce travel time and expenses associated with distant communication tools, it is noteworthy that it may not always result in reduced overhead costs, as it can sometimes require additional investment in office space and resources. Therefore, while A, B, and D are direct effects of co-locating staff, the impact on overhead costs, C, can vary based on specific project circumstances.