Centrifugal effects describes when a subunit of an organization pulls away from the main organization. It’s a concept I came across in the context of universities, but it can apply to any organization. I think it is a useful concept to understand and want to proliferate it.

These effects can occur when the subunit has strong leadership and culture, is able to generate / acquire and manage resources independently or has stronger relationships with the outside world than the main organization. The subunit can then become more independent and may even start to compete with the main organization. This can lead to a loss of control for the main organization and weaken other subunits, which may lead to the main organization losing its relevance. These strong subunits may be truly able to operate some parts better than the main organization. They may start to do more and more things independently and pull away resources from the main organization. Even though this use of resources may result in better outcomes compared to the main organization allocating the resources and letting the subunits operate under its umbrella, it can lead to a fragmentation of the organization and it may hinder applying the successful strategies to the whole organization. Also it may be that other subunits operate in a more difficult environment, so pulling away resources from them may lead to a disproportionate reduction in their performance.

An organization in which one subunit performs exceptional, while straining the other subunits is not healthy on the long run. On a short time scale it can be beneficial, the strong subunit can be a source of innovation and success, but these strategies need to be applied to the whole organization. The strong subunit may also be able to provide resources and training to the main organization. The subunit must still find value in the main organization, otherwise it will see it as a burden, red tape and parasitism. The other subunits may also feel neglected and may not be able to compete with the strong subunit, leading to a loss of morale and motivation.

To conclude, centrifugal effects can be dangerous and control measures need to taken to mitigate them. The main organization needs to ensure that the subunits are aligned with its goals and that they are not pulling away resources from the main organization. On a short time scale centrifugal effects can be beneficial, but on the long run, the main organization needs to reevaluate itself and focus on its core competencies and the essential.