Based on recent research  by Kellogg School of Management, contrary to expectations, decentralization might be the best strategy when the need for coordination among divisions is paramount.  In an age of cheap communication, decentralization is best even when coordination among divisions is critical. Centralization can be a good choice if the divisions are heterogeneous or if managers are especially biased in favor of their own divisions.  Hence the irony . . . this implies that with poor merger integration that centralization may be the best strategy BUT it will probably lead to greater disengagement over the longer term.  We believe that the need to create a New Identity through a true Shared Vision will lead to better alignment and less need for the controls of centralization.

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