As companies expand geographically, there is a more deliberate effort to identify responsibilities for the regions versus the central office. Companies yo-yo back and forth between a centralized vs. decentralized model, with the in-between solution being a more federated model.
The organization design must translate the company’s strategy into a value-creating operation. Usually, the central office will provide: strategy development, resources/functions, operational engagement, business synergies and financial advantages. For the regions, consistency is needed among the structure, people, processes and tools deployed to execute the strategy.
Then, there is the talent question…does the central office or regional have ownership of the talent?
What is your global organization design?
