Decentralized Organization

An Emergent pattern of Coordination through bidding

Reference article "Making the Decision to Decentralize" at http://hbswk.hbs.edu/item.jhtml?id=4020&t=organizations, a chapter from FutureOfWork

Decentralization achieved via:

• Loose hierarchies
• Democracies
• Markets

---

Related Material

2003 book Inventing the Organizations of the 21st Century (ISBN 0-262-63273-X )

• a PDF presentation at http://wi99.iwi.uni-sb.de/Folien/HV_Malone.PDF cited several small size-big impact firms, including "Nokia Display Products" with 160M revenues and managed by 5 employees. The presentation said it has outsourced sales, customer service, logistics, advertising, manufacturing, etc.

Conference on Decentralization SuperNova Jun2004 at http://www.itconversations.com/shows/detail155.html

• [...new technologies are now making it possible for the first time in human history to have the economic benefits of very large organizations and, at the same time, to have the human benefits of very small organizations, things like freedom, flexibility, motivation and creativity.]

Implications of the Digital Age at http://www.computer.org/internet/v1/malone9703.htm

---

Observations made

The article at http://www.theherald.co.uk/business/28210-print.shtml quoted a study that some Scots have chosen to migrate to Dublin to make a living, as the corporate culture is more relaxed, professional, flexible and supportive. Perhaps a Decentralized Organization could aim to win back the individual creativity lost through implementation of rigid policies by management at remote locations.

---

The link at http://www.atkearney.com/shared_res/pdf/strat_and_leadership_S.pdf looked at factors in integration of companies after a merger. While appearing to be the "opposite" to the direction taken in this page (integration /centralising "cultural aspects"), it has value for readers interested in DecentralizedOrganization and TheHeartOfChange.

---

From the AttentionEconomy article

Organizations will diminish in importance at rapid pace, relative to the importance of the individuals who are temporarily in them.

The author went on to using Harvard U to illustrate his case. Has anyone got information in the 6-8 years since his article, whether educational institutions are indeed much more decentralized?

---

Discussions

What separates a success DecentralizedOrganization from a ManagementlessOrganization?

---

CategoryManagement