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Consider  the extent a business depends on local assets

Consider the extent a business depends on local assets

A global company that relies heavily on capabilities like local procurement, production, and sales should consider decentralisation.

For businesses that depend less on local assets, a higher degree of centralisation may make more sense. Some brands rely heavily on the strong, centralised brand of the parent company, making it necessary to integrate their regional teams closely with their headquarters.

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MORE IDEAS ON THIS

Consider the pace your business sector is growing

Executives should analyse the pace of the specific industry in which their businesses operate.

Fast-paced sectors often require faster decision-making to respond to evolving opportunities and threats. As a result, teams in these sectors may benefit from greater autonomy.

Sectors such ...

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49 reads

Effective implementation takes planning and communication

Effective implementation takes planning and communication

Figuring out how much autonomy to provide your international teams. Then create a plan to implement these different levels and types of autonomy around the world.

  • Work with different departments to specify exactly where and how autonomy should be granted. Describe the categories of dec...

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18 reads

Consider how strong your relationship is with local leadership

Consider how much you trust your local counterparts. The more trust and the stronger your relationship, the better it is to give local teams more autonomy.

There are different ways trust can develop. Time is sometimes all that is needed. In other cases, organisations can build trust into th...

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34 reads

Multinational organizations expanding into global markets

Multinational organizations expanding into global markets

Home-office leaders need to decide how much autonomy they should give their local teams to expand into international markets.

Depending on several factors, managers can determine which overseas divisions will benefit from a more centralized structure and which will be better off making deci...

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159 reads

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