Centralized mindset; the surest way to obliterate Teamwork/Team Spirit!
The main reason that most Teams are formed is this; 2+2~ (may equal) 5!
Now having said that, wrong kind of management may kill the Team spirit and thereby the potential of getting the additional benefits!
Centralization and Decentralization are not very new concepts but due to their importance, they do deserve to be defined a bit...
In non-technical terms, "Centralization" is having and holding on to all the "bathroom keys" in a Centralized location and by a certain person so people will have to refer to him/her before doing their business!!! Centralization is simply referred to gathering & holding the power and authorities within an entity, one board, or one person. It's the concentration of an administrative power in a single authority.
The main purpose of Centralization is NOT that it's very effective or efficient, as it is neither one, at all. The main reason however is the "perceived" control that it gives to the person or the entity, which holds the power... Another reason is the perception that it creates in the public that everything is under control, so to speak! Other than these two supposedly "reasons", there are no other benefits to Centralized Style of Management!
One "valid" concern that may lead to "invalid" Centralized conclusion is this; what if we don't Centralized and we can't guarantee Accountability... Valid sickness, wrong medicine!
Accountability comes as a result of interviewing & hiring skillfully and training & trusting carefully! I'm not suggesting that Team Members should be able to sell the corporation on your behalf but if you think reducing their expenditure authorities from $1,000 to $100 will bring about accountability, you may be dead wrong! Some of them will find ten $100 ways to appropriate their $1,000 expenditure!
... decentralization
领英推荐
noun??de·cen·tral·i·za·tion??\?(?)dē-?sen-tr?-l?-?zā-sh?n?\
the dispersion or distribution of functions and powers (Webster Dictionary)
Decentralization by no means refers to a "loosey-goosey or hodge-podge" system. It too has its structure, which is based on dispersion of the "Responsibilities along with the appropriate Authorities" coupled with the right selection of the candidates, pertinent training, coaching and trusting!
This year I asked my consultants (other instructors call them students!) at UC Berkely, Extension to use the Ritz Carlton Hotel as one of their case studies. I had heard that each and every employee (Team Member) at RCH was empowered and authorized to spend up to $500/guest/case to address any issues they may have to satisfaction of their guests (customers). A great example of decentralization, I may add! I wanted to see if my "consultants" would catch this point, which was an awfully important management/leadership lesson to me...
To my amazement, I found that around 75% of them had mentioned it as a spectacular $2,000 expenditure authority, a successful example of Decentralization and a symbol of "full trust" that the management had exhibited in their people. I then found out that their Team Members (that are referred to as Ladies & Gentlemen), now had $2,000 expenditure authority (not $500 any longer) to please their customers (that were incidentally referred to as Ladies & Gentlemen, as well)!!! Please try to wrap your head around this; $2,000 for each bellboy, cleaning person and a clerk...Something that even some Plant Managers in the U.S. don't have, sadly!
Some Car Rental agencies have already started doing the returns, right in the parking lot, via a mobile handheld computer and within 95-seconds (my most recent experience), while some hotels check-in or check-out process can take as long as 30-minutes. Are they concerned that their "guests" will steal the room??? You see accountability doesn't come with Micro-Controlling but by Training, Coaching, Trusting and creating an error-proofed (Poka-Yoke) system! In other words, TA system that one cannot make a mistake/deviate from/abuse, even if one attempts to do any or all those! In other words, Train, Test & Trust!
Godspeed!
Hormoz Mogarei
Get Kaizened, Inc.
Agile Delivery Lead and Coach-MBA-SPC-CSM-TPM-SAFe POPM
6 年Great article, thank you for sharing! ?The lean and agile methodologies encourage decentralization especially when it comes to decision making in order to fulfil the customer's need. That's what the current market is yielding.? The main obstacle which I see is the lack of knowledge at the executive level, where C-level struggles to adopt the proper culture. I am of the opinion that a legendary training program is a must for cooperations so they can react to the rapid market changes properly, otherwise, they will start losing market share to the competitors without any doubt. The current edge technologies like blockchain which have already reformed our life to a noticeable extent is a great example of the value of decentralization as well.?#customerexperience?#customersatisfaction?#customercentric?#leanmanagement?#decentralization
CEO, PearlHPS Inc.
6 年Interesting point of view. I prefer situational leadership or the practical use of decision theory. Sometimes a Participative approach is the best vehicle to achieve an outcome and other times a different style is appropriate. If you use 1 style you risk a 50% sub-optimum outcome. Then there is the issue of why are some companies that have a dominate centralized leadership style successful financially? What is the explanation if as you suggest centralized leadership kills team work? I believe the answer is we are taking apples and oranges - Corp style and how teams are run can be very independent invents and not co dependent?
Advanced Technology Supplier Quality @ Zoox | Six Sigma Green Belt
6 年Together Everyone Achieves More
Data & Machine Learner in Business Analytics & Finance
6 年I found that when people are trained with how things work and how much cost they will have in the business if not implemented properly, this usually makes them understand how valuable it is to spend as it is their own money. Not to mention the enormous rapport you may build sharing your concern honestly with your subordinates, colleagues or employees. I do enjoy the content and of course learned some Japanese terms of Lean concept ! :)