Skip to content

ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Brightwell Group, a conglomerate, decentralised decision-making to divisional heads and now reports declining group-wide coordination: divisions duplicate IT spending, pursue conflicting customer deals and take on risk the board did not approve. Which response best rebalances the structure while retaining the benefits of decentralisation?

Retain divisional autonomy over operations but centralise shared services, group risk limits and key investment approvals. The problems arise from weak coordination and control, not from decentralisation itself. Selective centralisation restores consistency and risk oversight while preserving local responsiveness, unlike full recentralisation or removing reporting.

  1. ARetain divisional autonomy over operations but centralise shared services, group risk limits and key investment approvalsCorrect
  2. BFully recentralise all operational decisions at group head office
  3. CFurther widen divisional heads' authority and drop group reporting to avoid bureaucracy
  4. DReplace divisional heads with a single group manager with a very wide span of control

Explanation

The symptoms (duplication, conflict, uncontrolled risk) show decentralisation without adequate coordination and control. The remedy is selective recentralisation of shared services, risk appetite and major investments, keeping local operational autonomy. Full recentralisation loses responsiveness; removing reporting worsens the problem; a single manager with a huge span lacks capacity.

Did you get it right without looking?

One question tells you little. A timed set on Enabling success: organising shows your real accuracy, how long you take and where you lose marks.

More Enabling success: organising questions