This PPT slide, part of the 131-slide Post-merger Integration Training PowerPoint presentation, titled "Capturing Synergies" presents a structured overview of governance models, specifically focusing on centralized, decentralized, and hybrid approaches. Each model is evaluated based on its advantages and challenges, providing a clear framework for decision-making.
Centralized governance is highlighted for its ability to leverage scale economies and maintain simpler management structures. This model allows for rapid replication of successful practices across the organization. However, it faces challenges such as limited flexibility for business units (BUs) and potential issues with ownership of execution, which can hinder responsiveness.
On the other hand, a decentralized approach is praised for its responsiveness to individual BU needs and customization. It fosters clear accountability, which is crucial for performance tracking. Yet, it also presents challenges like ensuring consistent management across the organization and preventing excessive workloads on a few key individuals. This model risks losing benefits that could arise from cross-LOB collaboration.
The hybrid model attempts to balance the strengths of both centralized and decentralized structures. It offers increased flexibility and control over costs while improving responsiveness to specific LOB needs. However, it must navigate challenges such as identifying critical areas for deeper analysis and fostering a cohesive organizational memory.
The visual representation of strengths and weaknesses across the three models allows for a quick assessment of their effectiveness. This slide serves as a valuable resource for executives considering governance structures, emphasizing the need to align operational models with both program-specific requirements and broader organizational principles.
This slide is part of the Post-merger Integration Training PowerPoint presentation.
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