Sunday, September 07, 2008

Why distance; Distances Organizations?

Do we see such Disconnects in Organizations? A leading Management thinker C K Prahlad in one of his recent thoughts, mentions about how companies talk about 'growing' in emerging economies - but their structure, processes and people all are seemingly HQ centric! So the talk continues but the real investments continue to happen at HQ. When questioned, organizations seemingly come out with more rationalization and justification.

It is so often we see in corporate functions; typically to deal with Emerging markets, organizations would send its leaders from its headquarters to India or China or Brazil? Nowadays its usually the expats who are sent back. How I wish I can un-learn my decade long absence.

How about the other way round? Are leaders appointed in India, China or Brazil - and then the MNC's call on them to decide on their strategy for emerging markets?

We keep hearing many thoughts on ‘decentralized’ leadership, the ‘local CEO’ models. For me it all bogs down to the following:

a) Can the local take a call on investing?

b) Can the local run his or her own budget?

c) Can the local appoint a ‘local’ vendor?

Needs additional thoughts…

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