The Need for Organisational Resilience - Chapter 4

The ability of assessing and initiating independently is generally

In a decentralised organisation, front-line staff members are encouraged to

discouraged in a centralised environment. The focus is very much on

be decisive. Inactions and omissions are discouraged, and a will to realise

keeping to the plan or instructions from above. Performance is mainly

the intent is fostered. A barrier to being decisive is often the perception that

determined by their degree of compliance to rules and procedures, and

errors in judgement are to be avoided at all costs. However, unsuccessful

those commands or instructions received from higher up in the hierarchy.

localised decision-making should be seen as less of a setback than no action

In the extreme, staff are not explicitly required to assess the problems they

at all, and ideally as an opportunity to try again. In this respect, superiors are

are facing. An example of this would be in the early days of Henry Ford’s

reluctant to ‘take-over’ immediately. Likewise, subordinates do not give way

production line, where ‘optimised’ jobs were designed and staff merely had

to the temptation to escalate a problem away from them and pass the

to perform the assigned roles. Nowadays, it is fair to say that ‘automaton’

problem ‘upwards’. Initiative means that localised decision-makers should be

jobs that can be automated either have been, or soon will be. The role of

able to try again, until the intent is realised. This does require a culture in

initiative, then, is one of degree. In a centralised organisation there is less

which sensible ideas that are genuinely tried in good faith, but which don’t

scope for initiative at the lower levels, but there will likely be scope for ‘in

work, aren’t punished. If it is unsafe to suggest alternatives, or failure to

the moment’ decision-making at an operational level.

deliver on a risky idea is perceived as career-limiting, then the natural

incentive is to remain quiet.

Sensitivity

Both the ‘what’ to accomplish and the ‘how’ to accomplish it are defined in

Closeness to the customer is valuable as this gives greater insight into their

detail by the higher echelons in an organisation, and then broken down for

needs, but teams need to be authorised and empowered with decision-

subordinates to carry out. Centralisation tends to lead to a more vertical

making authority to do what is required. Decentralisation therefore implies a

style of communication. Senior management and/or Head Office primarily

wider variety of tasks or processes. Thus locally-accountable staff may

issue instructions, those lower down the hierarchy implement them and

implement their ideas to ensure better performance, rather than passing

report back regularly. Should a major overall operational change be

queries up their chain of command for someone else to fix who may not

required (such as a new IT system, or the provision of an additional

actually have the detailed knowledge.

product or service), this can generally be implemented more smoothly from

above. Power residing at the top should also prevent one part of the

business deciding to go its own way on important issues, and retaining

budgetary control is a powerful mechanism for ensuring this.

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