Companies need to determine how functions best fit into their value-creation narrative. Organizations must answer the following questions:
- What are the key decisions that business-unit leaders need to make, and what do they need to control? For example, if IT business-application development is a core enabler for a business unit’s growth strategy, how much control does its leader need to ensure that projects are done correctly? And how different are that business-unit leader’s needs compared to those of others in the organization?
- What markets, products, and customer bases might require targeted functions? What shared needs could be addressed more effectively or efficiently if they were commonly tied across the organization?
- For functions that leaders argue should be more centralized (by ownership, by accountability, or by resources), organizations should ask, “Why are these resources best housed at the center? How will the business units, which are giving these resources away, benefit from the arrangement? And what is the benefit for the enterprise?”
Authors: Aaron De Smet, Caitlin Hewes, Elizabeth Mygatt, Kirk Rieckhoff
Source: Redefining corporate functions to better support strategy and growth
Subject: Management Questions
Source: Redefining corporate functions to better support strategy and growth
Subject: Management Questions
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