Christopher Bartlett [Archive.org URL]

It is not centralization that drives scale; it’s specialization. And that doesn’t have to be central at all. Specialization is about where you create centers of excellence—and that may or may not be at the corporate center. Now, creating this integrated network of specialized operations does increase the coordination needs. So when we wrote about centralization versus coordination, we emphasized the challenges of coordinating operations that were no longer independent of the center nor dependent on the center. The new relationship is one of coordinated interdependence.

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