It is very difficult to achieve cross-divisional integration without reducing decision making ability of individual divisions. However, this can be done by aligning the goals of the individual divisions with the common goal of the company. For example, in a manufacturing setup, the ultimate goal is to get the desired production levels. To achieve cross divisional integration in this case, the incentives of each division should be adjusted in such a way that every division fully contributes in reaching the production number. So, although the divisions will work towards achieving divisional goals, eventually they are coordinating to make the firm reach its goal.
The advantage of this strategy is that each division feels empowered which keeps employee motivation high. Hierarchy structures remain small which helps in better management.
The disadvantage is that since the divisions can have personal interests creep up. There might also be inter-divisional competition which might go bad. Also, if one division goes lagging due to some reason, the whole strategy will fail to deliver.
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