Centralisation or Decentralisation

The age-long dilemma.

Organizations are rarely purist, so most entities offer a mix of both.

For this short piece, let us stick to the 2 broad headers – centralization and decentralization.

Centralization offers scale. This can be used to negotiate every contract from a strong position. It also offers simplicity in systems – innovate at the center, execute everywhere else. The disconnect breeds innovators that overestimate their ideas and executors that underestimate their impact. A limitation to avoid is a situation where the people at the center make all the decisions but take no responsibility for negative outcomes.

Decentralization offers speed. Decision making is at the point of action. Sadly, within this strength is a limitation. Unlike velocity, speed lacks and needs direction. Decentralization also unleashes innovation. A limitation to avoid is negative competitiveness. Win-Lose relationships within an organization ultimately offers a zero outcome.

What in your opinion is the best path for organizations? Why?

– Osasu Oviawe

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