There must also be a wider coherence among the
organization’s success factors, its strategy, its management
processes, and its leadership styles and culture.
The process is about lifting the burden of bureaucracy
from the shoulders of front-line people, eradicating the dependency culture and enabling people to accept even
more responsibility for their own performance.
The delegation of decision-making and spending
authority has always been one of the key functions of
budgeting. However, this delegation usually occurs
within a regime of compliance and control. When that
power is transferred from the center to operating managers
and their teams, vesting them with the authority to
use their judgment and initiative to achieve results without
being constrained by some specific plan or agreement,
the organization creates an empowered work
force. That in turn drives superior performance.
Radical decentralization requires that leaders share six
common principles. These are: