THE MAGIC OF DECENTRALIZATION Decentralized management is the heart of J&J's organization. It allows managers who are closest to customers and com petitors to make decisions. As the company says, it aims to be big and small all at once, building its global reach from the integration of many small units. By design, each of its 250 units operates with substantial autonomy, commanding the authority to act as it believes best given local conditions. Each is its own business, entrepreneurial in character, and aware that success depends on anticipating local customers' needs and delivering solutions. Decentralization, explains Ralph Larsen, former CE0 "gives people a sense of ownership and control-and the freedom to act more rapidly."2 His successor, William Weldon, concurs, adding that reducing bureaucracy, liberating initiative, and rewarding enterprise-the hall- marks of a decentralized organization is the wellspring of the magic around J&J." Moving decision-making