To Centralize or Not to Centralize… That is the Question

McKinsey Quarterly takes a look at the centralize vs. decentralize decision so many organizations face and one, in my humble opinion, which higher ed should ask more often. McKinsey recommends asking three questions to frame productive debates on the subject. From the article:

Is centralization mandated? Can it add 10 percent to a corporation’s value? Can it be implemented without negative side effects? A proposal to centralize only needs a yes to one of these three questions. Yet they provide a high hurdle that helps managers avoid too much centralization. Moreover, they stimulate open and rational debate in this highly politicized area. By giving those in favor of centralization and those opposed to it a level playing field for building a case, these questions help companies strike the right balance between centralization and decentralization today and to evolve their organizations successfully as conditions change over time.

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