Decentralization: How to Do It Effectively
Abstract: Few leaders know how to decentralize their organizations effectively. Just delegating more authority within the tramlines of fixed targets and budgets will not get you there. They need to create as many small units as possible and then give them real autonomy and make them accountable for their performance. This requires the full backing of the board, a realignment of head office roles and the creation of self-managed teams as well as performance management processes that support those roles. This paper explains what needs to be done to make decentralization move from a pipedream to a reality. Done well, stifling controls and micro-management is replaced by learning, innovation and continuous improvement.