„During the recent months of crisis, decision-making processes within companies have become increasingly centralized. Painstakingly elaborated processes, structures, and management models that had at last bolstered empowerment now threaten to fall victim to the crisis. It has been vital here to allow the benefits of a decentralized corporate management to shine, especially in the “new normal”.“
These are the opening lines of the op-ed contribution by Lars Linnekogel, Founder and Managing Director of TTE Strategy, in the German media outlet Changement. Changement is one of the leading magazines in the field of transformation and change management.
Linnekogel describes the current situation, which sees an increasing number of companies moving their decision-making processes back to head office. In six points, he illustrates how it is nonetheless possible to preserve successes in the development of the organizational and management structure and how this has a positive impact on the quality of decision-making within the company – even during the current corona pandemic.
“Empowerment means putting individual units in a position to make quicker and perhaps better decisions.”
“A small, central committee can hardly deliver adequate responses to all challenges.”
“It is worth an intensive evaluation and discussion regarding which decisions should be made at what level in future.”
“The more decisions the upper management delegates, the more clearly they must define their overall goals and relevant subgoals.”
“Even if decision-making power has been moved to a lower hierarchy level, there must be an ongoing exchange between the new decision makers and top management.”
“Clear criteria should be defined relating to if and when a decision can be revoked.”
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