Decentralize in Order to Coordinate?

It is probably not a new experience, but many projects trying to centralize organizations with the aim of more coordination and the realization of synergy effects have resulted apparently for each member of the organization in an increase of "red tape" (more paper, more external control, ...), while the promised effects are not so prominent. In a very interesting blog post Ricardo Alonso et al. summarize research results that seem to point towards an opposite strategy if coordination is paramount:

"Contrary to expectations, decentralization might be the best strategy when the need for coordination among divisions is paramount."

The blog post with some further reading suggestions can be  found at: When Does Coordination Require Centralization?

Tags: strategy, management