How to Align Centralised Change with Local Autonomy: A Guide to Future-Proof Operating Models

A common challenge in transformation projects is aligning local autonomy with centralised change. This dynamic often plays out across regions, NHS Trusts, business units, and global operations, where local decision-making power can sometimes conflict with broader organisational goals. Addressing this issue requires a thoughtful and strategic approach.

The Problem

In decentralised structures, local teams often hold significant decision-making authority and manage their own P&Ls. While this autonomy allows for flexibility, it can lead to resistance when centralised changes are introduced, especially if local priorities seem misaligned with the overarching strategy. Balancing these two forces is essential for successful transformation.

Strategies for Success

✅ Document Decision-Making Rights
Many organisations lack clarity on who holds decision-making authority at different levels. By mapping these rights, gaps and misalignments can be identified. For example, a Telco aiming to empower Product Owners discovered that authority and accountability were not properly aligned. Addressing these gaps allowed the organisation to design an operating model that facilitated faster and more effective decision-making.

✅ Identify True Influencers
Formal structures don’t always reveal the real decision-makers. Informal influencers often hold significant sway within organisations. In a commercial real estate project, one country head, despite lacking formal authority, consistently influenced the direction of others. Recognising and engaging such individuals is critical to driving alignment and progress.

✅ Tie Outcomes to Incentives
Resistance to change often stems from misaligned incentives. For instance, a system rollout negatively impacted local P&L for two years, leading to pushback from leaders whose bonuses were tied to short-term performance. Aligning incentives with long-term success reduced resistance and supported the transformation.

✅ Co-Create Non-Negotiables
Decision principles provide clarity during transformation, but their strength comes from collective creation. Collaborative workshops ensure that stakeholders agree on non-negotiables. While disagreements are common, these principles anchor decision-making and provide a reference point for resolving future conflicts.

✅ Co-Design the Future State
Stakeholder involvement is crucial during the design phase. In a project with NHS Trusts, CFOs frequently asked, “Who on my team has inputted into this?” Incorporating input from key stakeholders not only ensured alignment but also avoided resistance caused by a lack of ownership. When operating models are designed without collaboration, adoption often fails due to the “not invented here” mindset.

✅ Create a Shared Vision
Communicating the broader impact of change is essential, especially when it seems to negatively affect certain teams. In one instance, a smaller market resisted adopting a system that increased their workload. By showing how their efforts contributed to regional success, alignment was achieved. The key was articulating the shared vision in a way that connected to individual contributions and value.

The Path Forward

With the rapid advancements in AI and increasing cost pressures, organisations need to rethink their operating models to remain competitive. Balancing local autonomy with centralised change is rarely a straightforward process. It requires clear strategies, collaboration, and alignment to ensure the organisation is positioned for long-term success.

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