One of the world’s oldest political philosophies is its newest subject of interest. The European Community, the new Commonwealth of Independent States, Canada, the former Czechoslovakia, and many more are all re-examining what federalism really means. Businesses and other organizations are beginning to do the same. Everywhere companies are restructuring, creating integrated organizations, global networks, and "leaner, meaner" corporate centers. In so doing, whether they recognize it or not, they are on a path to federalism as the way to govern their increasingly complex organizations.

Federalism offers a well-recognized way to deal with paradoxes of power and control

The prospect of applying political principles to management issues makes a great deal of sense, given that organizations today are more and more seen as minisocieties rather than as impersonal systems. But the concept of federalism is particularly appropriate since it offers a well-recognized way to deal with paradoxes of power and control: the need to make things big by keeping them small; to encourage autonomy but within bounds; to combine variety and shared purpose, individuality and partnership, local and global, tribal region and nation state, or nation state and regional bloc. Change a few of the terms and these political...