A: Hi, we’re at Lesson sixteen today, and it’s:In competitive markets, local decision-making is critical. Scott, in business, when is it local knowledge more important than central control?
S: That’s a really good question, Angie, and it’s a question that most companies struggle with. I’ve worked for several companies. All of them started out being central-controlled companies where decision-making was all made at corporate headquarters. In every instance, I’ve set up a regional decision-making branch of offices to be closer to the customers. What works in Kingsport, TN doesn’t necessarily work in Naples, FL or Brisbane, Austrailia.
So having people close to the ground, having people close to their customers is critically important. Maintaining financial controls at headquarters is also important, but my experience has been 100% of the time, decentralizing leads to improved performance.
A: This is Angelina Neglia with Scott MacDonald, author of Saving Investa. Phrase of the day is “Go local if you want to market success.”
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