Every organization that grows beyond a certain scale wrestles with the same dilemma. How much control should the corporate center exert, and how much freedom should local units have? Get the balance wrong, and you either drown in bureaucracy or descend into chaos. The Operating Model principle of “Define the Role of the Center” exists to prevent both extremes.
The center is often misunderstood. Many leaders see it as the place where reporting happens and corporate policies are issued. In reality,