Realizing Decentralized Economies of Scale

MIT CISR

Nick van der Meulen. the author of MIT CISR's January 2023 research briefing, reads the briefing in this podcast. See the text version and related content at https://cisr.mit.edu/publication/2023_0101_DecentralizedDecisionMaking_VanderMeulen. Abstract: Drawing on MIT CISR survey data, this research briefing describes how the extent to which an organization distributes operational decision rights to a majority of its teams can improve the speed at which the organization is able to sense and seize opportunities. By combining this approach with a set of practices that reduce bad complexity and promote the reuse of existing solutions, large established organizations can turn their size into an advantage—yielding increased innovative capacity and greater financial performance.