To be sure, decentralization comes with risks, not least of which is the duplication of systems, costs, and functions that get streamlined in an efficient corporate structure. As Novartis CEO Vas Narasimhan said to me last year, “to navigate complexity in the external world, you have to radically take out complexity internally.” That means creating a leaner and simpler organization where everyone knows who is responsible for what. It’s possible to have that alongside autonomous and agile regional operations, of course, but it requires leaders whose teams are aligned on what efforts are localized—and what stays the same.
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