BALANCE BETWEEN DECENTRALISATION AND FORMALISATION

Decentralised teams are empowered to make decisions about how to proceed (or not) in NTD/NPD processes, but at the same time the decisions made in single teams may not be accessible to the whole organisation. Formalisation of activities will improve communication between marketing and R&D because the team members are forced to share information at scheduled face-to-face meetings or via knowledge management systems. Without these formal procedures, information sharing may happen ad hoc by specific initiative of the team members. A high level of formalisation leads to better integration between marketing and R&D due to less role ambiguity and conflict between functions, but should also allow the more informal encounters.
Finding the right balance of empowering the teams to pursue their set goals and keeping up sufficient information flow from development teams to the other parts of organisation requires case-by-case assessment.

recommendation