There must be a kind of “supremacy clause” reserving to central management the decisions that affect the business as a whole and its long-range future welfare.
Top management in a decentralized company must think through carefully what decisions it reserves for itself. For there are decisions that have to do with the entire company, its integrity, and its future. These decisions can be made only by somebody who sees the whole and is responsible for the whole. Specifically, there must be three reserved areas if the business is to remain a whole rather than splinter into fragments. Top management, and top management alone, can make the decision on what technologies, markets, and products to go into, what ...
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