Issue 202, March 6, 2025
We have been keen observers of an organizational cyclical pattern to solve problems that we call the revolving door of centralization and decentralization. Organizations across many industries experience this recurring pattern, shifting between these two organizational constructs. Counterintuitively, organizations seem to repeat the cycle every few years, often framed as a novel strategic solution to operational challenges. A decentralized approach fails. Centralize. A centralized function becomes bureaucratic and slow. Decentralize.
Two Models
A pivot manifests when a top-down strategic direction seems unworkable. Conversely, it is triggered when collaboration appears to be broken. For example, in a decentralized system when decision-making is isolated, it can trigger consequences for other parts of the system. It gets more complicated when individual team leaders believe decentralization delivers greater efficiency, fewer headaches, greater control or cost savi…
