Organizational structure is notoriously difficult to design. The key functions or units to centralize remain a big challenge. However, centralization can bring with it many benefits such as: cost savings, standardization, and sharing of best practices.
At a glance
- Although the pendulum may be swinging back toward decentralization, centralized structures still could offer significant costs savings.
- Determining the right model is critical to any restructuring effort.
- Businesses must consider the pros and cons of centralization versus decentralization, the various hybrid models, and then determine the most critical business processes.