University of St.Gallen
research platform alexandria
search publications
browse publications
by person
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 
by year

To centralize or not to centralize?

abstract The CEO’s dilemma—were the gains of centralization worth the pain it could cause?—is a perennial one. Business leaders dating back at least to Alfred Sloan, who laid out GM’s influential philosophy of decentralization in a series of memos during the 1920s, have recognized that badly judged centralization can stifle initiative, constrain the ability to tailor products and services locally, and burden business divisions with high costs and poor service.1 Insufficient centralization can deny business units the economies of scale or coordinated strategies needed to win global customers or outperform rivals. Timeless as the tug-of-war between centralization and decentralization is, it remains a dilemma for most companies.
   
type journal paper
   
keywords Centralization, Decentralization, Corporate Strategy, CEOs, Corporate Headquarters, Corporate Parent, Parenting Advantage, Strategic Management
   
language English
kind of paper journal article
date of appearance 1-6-2011
journal McKinsey Quarterly
publisher McKinsey & Company (New York)
ISSN 0047-5394
volume of journal 2011
number of issue June
page(s) 97-102
review not reviewed
   
citation Campbell, A., Kunisch, S., & Müller-Stewens, G. (2011). To centralize or not to centralize?. McKinsey Quarterly, 2011(June), 97-102.