Many large enterprises struggle with the tension between market-focused business units, and the leverage, harmonization and cost-effectiveness that comes from centralized management of business activities. This resource is a one-slide “model” developed in the early 2000s based an arcane IBM model for IT systems. The concept and original verbiage has been adapted to address typical centralized vs. decentralized organizational considerations.
This “hybrid” model is highly relevant to many companies that are struggling with enterprise harmonization tensions. Adopting leverage across the enterprise where it makes sense is good thing — but not centralization for centralization’s sake. Understanding what you’re trying to accomplish with organizational design is critical, as is understanding the tradeoffs and constraints that exist. All of the foregoing are essential in mapping what the right organizational dynamic for your company looks like. This thinking also directly applies to design for quality standards and process alignment.
Compliance Architects® takes the “architectural” approach to quality systems and quality organizational design. These important functions elements must to align to your company’s business objectives and market strategy. This simple but model can provide a starting point for essential stakeholder dialogue on enterprise operational approaches.