One of the common problems executives face is a lack of flexibility in their organizations during crunch time. Typically, crises blow up to critical levels before they come to the executives' attention, at which point they must personally intervene. Ideally, crises should be nipped in the bud, and lower-level employees must deal with them proactively.
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Promoting from within is ideal because long-term employees understand the company and its products well. They've witnessed the company's processes from the ground up, which makes them ideal leaders. However, centralized organizations don't provide low-level employees with the opportunity to ascen...
A centralized organization places an enormous amount of power in the hands of a few. The organization is structured vertically, leading to lengthy decision-making chains where every decision is second-guessed.
In contrast, a decentralized organization prioritizes the opinions of people clo...
Decentralized organizations work best when responsiveness is the top priority. An organization structured in this fashion also frees up executives' time to carry out more value-added work instead of chasing...
Organizations face employee churn all the time, whether due to a lack of challenging work or dissatisfaction with the company's overall direction. Both of these reasons are interconnected. An inflexible organizational hierarchy leaves employees fighting to impress their managers instead of creati...
Scaling a business is a tough task.
Typically, a centralized organization has to design new hierarchies and determine the degree of additional responsibility existing executives will bear. All of this results in a slow-moving expansion that often stops before it begins. In contrast, a dece...
The flexibility inherent in the organization also allows employees to choose the work they're most passionate about instead of following a default executive career path. Thus, people who are truly passionate about becoming executives and performing the tasks inherent to these roles occupy the pos...
When expanding into a new market, a fully empowered team can research local norms and inform the broader organization of the steps it is taking to launch the company's products in that market. Thanks to the absence of lengthy approval times, the team can move quickly and establish a presence....
Decentralization is much more than a buzzword these days. It's the best way for organizations to structure themselves in 2022 and beyond.
Given the rapid change of pace in the business world, decentralization is the best way to future-proof an organization.
"Money does not guarantee success." ~ Jose Mourinho
A quiet revolution is taking place in the workplace right now. Here's why centralized, hierarchal corporate structures are out.
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