The complexity and uncertainty of the business environment are significant influencing factors in determing a function’s ultimate degree of centralization.
This checklist is intended to help organizations considering restructuring a function weigh these environmental factors and the extent to which they align with or deviate from restructuring plans. Use this checklist to:
- Rate a series of statements pertaining to the complexity and uncertainty affecting the function being restructured.
- Gain a range-based score to understand if complexity and uncertainty are low, moderate, or high.
- Shift your degree of centralization baseline more towards centralized or decentralized to better align your target structure with external realities.
Use this checklist to gain additional insight and is an important source of input for your degree of centralization decision.