The good design principles and tests - The knowledge and competence principle
3 important questions on The good design principles and tests - The knowledge and competence principle
What can be best decentralized and centralized?
Decentralized: managers close to markets/technologies to make decisions
Centralize: upper levels focus on strategy and policy
What is the knowledge and competence principle?
Which responsibilities to decentralize, and hierarchical levels involvement. (complexities of sharing knowledge, they can stick or leak)
Decision rights should end up in the hands of those that have suitable knowledge/competence and are in the best place to exploit them. Designers have to allocate these responsibilities. What is rooted knowledge?
The most valuable knowledge, because it is difficult to copy/transfer. Therefore should the allocation of responsibilities follow hard-to-move knowledge/competence.
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