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Centralised, Decentralised or Coordinated Operating Model?

Lily Poelmann 3 months ago

In the latest addition to our Strategic Thinking series, we discuss how to choose the best Operating Model Archetype for your Vendor Management Office. Popular business models tend to be a pick between a Centralised approach and a Decentralised approach:

Centralised: A centralised operation model means that you have a single team that works on behalf of all other business units in the organisation. This structure is common in small to medium sized organisations and tends to concentrate decision-making at the top.

Decentralised: A decentralised model indicates that authority and decision-making is distributed across teams and individuals. This structure has the benefit of enforcing responsibility across the entire organisation, which in turn increases user-level buy in and compliance.

Rather than only offering the choice of these two models on either sides of the spectrum, we introduce a combined approach that leverages the benefits of both centralisation and decentralisation:

Coordinated: In this structure, you have a small Subject Matter Expert Team (SME) that sets the standards and blueprint to then coordinate with the rest of the business.

Watch the full episode to understand the full list of benefits and determine the best model for your organisation.

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