This is a story told by eFACS Tutor Tim Perry, they once worked with a multi-national company who centralised everything into competence centres. The company had its accounting & finance department in the States the corporate global headquarter, procurement in Germany the region headquarter, and its operation is in U.K. The result, it was very difficult to tell the procurement and finance that they need better incoming raw materials.
By building up global competence centres in effect to some extend are building up "barriers between staff areas", which encouraged in this case "awarding business on the basis of price tag" and "management by numbers". When was the last time you hear your hardware engineer complaining that the software came from his Indian colleagues did not exactly work as expected and the managers just simply blame the hardware engineer's inability to work across different cultures?
BTW, "Management often complicate the work of the people in design by making last-minute changes in style and engineering, after the plans are submitted production is ready, leaving to the design and production engineers only a few weeks to do a year's work." Any wonders for project managers why projects are so often late by months or even years? When was the last time that the top management wanted a more stylish cabinet or body?