Centralized Control is the practice of concentrating decision-making authority at the top of organizational hierarchies, creating bottlenecks that slow response and disconnect decisions from information.
How It Manifests
- All decisions require executive approval
- Front-line workers can’t act on insights
- Knowledge workers wait for direction
- Innovation requires permission
- Change moves at leadership pace
The Problems
Bottlenecks:
- Decisions queue at the top
- Response times slow dramatically
- Opportunities missed
- Problems fester
Information Disconnect:
- Executives lack operational context
- Decisions made without full information
- Strategic blind spots develop
- Reality diverges from plans
Capability Suppression:
- People stop thinking
- Initiative disappears
- Learned helplessness develops
- Talent attrition increases
Why It Persists
Despite problems, Centralized Control persists because:
- Leaders fear loss of control
- Systems encode approval requirements
- Culture rewards compliance
- Change feels risky
The Alternative
Distributed Authority reconnects decisions with information, enabling organizational agility and innovation.