A marketing department at a large company sends the same collection of signs, posters and product displays to each of its stores. But different stores around the country need different types of marketing supplies.
When each store has a budget from which they can choose to buy only the supplies they want from the marketing department, then costs go down and the marketing department gets feedback on what’s working.
There is a central shipping department at a large company. This department does a terrible job of communicating with customers and delivering orders.
When each sales team at the company is able to decide:
- whether or not to pay the shipping department to use their services,
- whether to start doing shipping themselves, or
- whether to hire an outside shipping company,
then quality goes up, sales to customers go up, and costs go down.