Governance Models: Advantages, Challenges, and Evaluation PPT

This PPT slide, part of the 131-slide Post-merger Integration Training PowerPoint presentation, presents a structured overview of governance models in the context of organizational integration, specifically focusing on centralized, decentralized, and hybrid approaches. Each model is assessed through its advantages and challenges, providing a comprehensive understanding for decision-makers.

For centralized governance, the advantages include leveraging scale economies, which can lead to cost efficiencies. It simplifies control and management, ensuring accountability across the organization. However, challenges arise, such as potential limitations in segment flexibility and the risk of creating a disconnect among business units (BUs).

The decentralized model offers greater responsiveness to specific BU needs, allowing for customization that aligns with local market demands. This model promotes clear accountability,, but it also faces challenges like maintaining consistent management practices and avoiding excessive workloads on a few individuals. The risk of losing cross-BU benefits is another concern that needs addressing.

The hybrid approach attempts to balance the strengths of both centralized and decentralized models. It provides increased flexibility and better cost management while improving responsiveness to BUs. However, it must navigate challenges like early identification of critical areas requiring attention and facilitating cross-BU initiatives.

The scorecard at the bottom evaluates each governance structure against key criteria: control, scale economies, building organizational expertise, responsiveness, and adaptability. This visual representation helps in quickly assessing the effectiveness of each model, guiding executives in making informed decisions about their governance strategies. Understanding these dynamics is crucial for organizations looking to optimize their integration processes and achieve long-term success.

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PMI Synergy Post-merger Integration Cost Management Post-merger Integration Governance