What else should the region do to become more efficient?

Although a flat structure has been promoted as a means to decentralize decision making, decentralization does not necessarily occur. The style of decision making and the way information flows through an organization can be distinct from the type of structure used. Conversely, tall, hierarchical organizations can decide to decentralize decision making without altering their structure. HealthBest Inc. decided to eliminate two regions and one layer of management, predicting that these changes would reduce costs and speed decision making. The Western Region was created, with 21 hospital CEOs reporting directly to the regional VP. All CEOs met with key regional and corporate managers shortly before the structural changes were to be announced. The corporate chief operating officer (COO), Hud, explained the rationale, stressing the need for quicker decisions as the company faced more aggressive competition. He showed a slide that stated, “A flatter structure for a more competitive environment.” All of the CEOs seemed to be positive about the changes.