Sloan saw it as a constitutional problem to be solved through a new structure; decentralization which balances local autonomy in operations with central control of direction and policy.
Related Quotes
Wresting authority from central functions was a challenge, yet several plants made progress—none more than Olsztyn. The key, local managers realized, was to win permission for a targeted experiment and then use the results to gain further autonomy.
They all tackled a problem at the highest conceptual level of understanding. They tried to think through what the decision was all about, and then tried to develop a principle for dealing with it. Their decisions were, in other words, strategic, rather than adaptations to the apparent needs of the moment.
“The big business, Sloan saw, needs unity of direction and central control. It needs its own top management with real powers. But it equally needs energy, enthusiasm, and strength in operations. The operating managers have to have the freedom to do things their own way. They have to have responsibility and the authority that goes with it. They have to have scope to show what they can do, and they have to get recognition for performance.
Sloan saw it as a constitutional problem to be solved through a new structure; decentralization which balances local autonomy in operations with central control of direction and policy.
They all tackled a problem at the highest conceptual level of understanding. They tried to think through what the decision was all about, and then tried to develop a principle for dealing with it. Their decisions were, in other words, strategic, rather than adaptations to the apparent needs of the moment.