Greater change and uncertainty in the environment are usually associated with decentralization.

A good example of how decentralization can help cope with rapid change and uncertainty occurred following the September 11, 2001, attacks in the United States. UPS trucks, which carry 7 percent of the country’s gross domestic product on any given day, were able to keep running on time in New York, thanks largely to a decentralized management system that gives local managers authority to make key decisions.16 The changing environment relating to defense has caused the U.S. Army to go through major restructuring and decentralization in recent years, as described in the Focus on Collaboration box.

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