Creating more value with corporate strategy
Few companies create strategies that deliver more value than the sum of their business unit parts, but those that do also excel at moving resources and removing barriers.
The development of a corporate strategy should amount to more than the aggregation
of business unit strategies. The best corporate strategies, in our experience, force a multibusiness company to make clear choices about its portfolio and the allocation of its resources. Yet the results of a recent McKinsey survey show that just one executive out of five says his or her corporation fully addresses strategy in this way. What’s more, more than a quarter of executives at multibusiness companies say their corporations lack a consistent process for developing strategy. In this survey,1 we asked executives at multibusiness companies how they approach the development of corporate strategy—the frequency with which they review it and the amount of
The online survey was in the field from December 7 to December 17, 2010, and received responses from 2,313 executives around the world, representing the full range of industries, regions, tenures, and functional specialties. Of those, 1,944 respondents are at multibusiness companies and can describe their companies’ process for developing a corporate strategy.
time they spend on it, the inputs of the process and the resulting activities, the barriers to reallocating resources, and the talent and other management processes they apply to overcome these barriers. A small group of 151 respondents emerged who rate their companies’ approaches to strategy development as very effective and also say their profit margins are higher than those of competitors. Executives at companies that are “effective developers of strategy” are twice as likely as their peers to say their companies apply a distinct corporate strategy process
McKinsey Global Survey... [continues]
Cite This Essay
(2011, 01). Mckinsey - Strategy. StudyMode.com. Retrieved 01, 2011, from http://www.studymode.com/essays/Mckinsey-Strategy-562947.html
"Mckinsey - Strategy" StudyMode.com. 01 2011. 01 2011 <http://www.studymode.com/essays/Mckinsey-Strategy-562947.html>.
"Mckinsey - Strategy." StudyMode.com. 01, 2011. Accessed 01, 2011. http://www.studymode.com/essays/Mckinsey-Strategy-562947.html.