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Guiding Decentralized Decision-Making by Acting on Purpose

In this audio edition of the October 2023 briefing, hear about how the success of decentralized decision-making hinges on organizations having an ingrained and comprehensive organizational purpose.
Abstract

Recent MIT CISR survey data showed that nearly every participating organization had crafted a purpose statement. However, only half had defined the aspirations, propositions, and values that together comprise a comprehensive organizational purpose statement that can become ingrained in leaders’ strategic planning and teams’ decision-making. Drawing on MIT CISR survey data and a case study of Allstate Insurance, this research briefing describes how combining such a comprehensive organizational purpose with decentralized decision-making results in accelerated strategic objective realization and improved financial performance.

The October 2023 research briefing is read by author Nick van der Meulen.

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© 2023 MIT Center for Information Systems Research, Van der Meulen and Beath. MIT CISR Research Briefings are published monthly to update the center’s patrons and sponsors on current research projects.

About the Researchers

Profile picture for user cynthia.beath@mccombs.utexas.edu

Cynthia M. Beath, Professor Emerita, University of Texas and Academic Research Fellow, MIT CISR

MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)

Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.

MIT CISR Patrons
AlixPartners
Avanade
Axway, Inc.
Collibra
IFS
Pegasystems Inc.
The Ogilvy Group
MIT CISR Sponsors
Alcon Vision
Allstate Insurance Company
Amcor
ANZ Banking Group (Australia)
AustralianSuper
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of Queensland (Australia)
Barclays (UK)
BlueScope Steel (Australia)
BNP Paribas (France)
Bupa
CarMax
Caterpillar, Inc.
Cemex (Mexico)
Cencora
CIBC (Canada)
Cochlear Limited (Australia)
Commonwealth Superannuation Corp. (Australia)
Cuscal Limited (Australia)
CVS Health
Dawn Foods
DBS Bank Ltd. (Singapore)
Doosan Corporation (Korea)
Fidelity Investments
Fomento Economico Mexicano, S.A.B., de C.V.
Fortum (Finland)
Genentech
General Mills, Inc.
Gilbane Building Co.
Henkel AG & Co. (Germany)
Johnson & Johnson (J&J)
Kaiser Permanente
King & Wood Mallesons (Australia)
Koç Holding (Turkey)
Mercer
Nasdaq, Inc.
NN Insurance Eurasia NV
Nomura Holdings, Inc. (Japan)
Nomura Research Institute, Ltd. Systems Consulting Division (Japan)
Novo Nordisk A/S (Denmark)
OCP Group
Pacific Life Insurance Company
Posten Bring AS (Norway)
Principal Life Insurance Company
QBE
Ramsay Health Care (Australia)
Raytheon Technologies
Scentre Group Limited (Australia)
Schneider Electric Industries SAS (France)
Stockland (Australia)
Tabcorp Holdings (Australia)
Telstra Limited (Australia)
Terumo Corporation (Japan)
Tetra Pak (Sweden)
Truist Financial Corporation
UniSuper Management Pty Ltd (Australia)
Uniting (Australia)
USAA
Webster Bank, N.A.
Westpac Banking Corporation (Australia)
WestRock Company
Wolters Kluwer
Xenco Medical
Zoetis Services LLC

MIT CISR Associate Members

MIT CISR wishes to thank all of our associate members for their support and contributions.

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