The Corporate Center - Lean but not Anorectic

In multibusiness companies, the invariably skeptical business units and the company s concerned shareholders often suspect corporate headquarters of being a worthless overhead, adding no value. The corporate center finds itself having to justify its very existence. To ensure its usefulness and acceptance, the corporate center should put value at the absolute heart of its design how, in a word, can the center add incremental value above and beyond that which the businesses can create on their own.  

Most of the big chemical companies have chosen a multibusiness management approach, where the primary governance role of the center is to enhance the per- 

Stand- Cap- Shared Same alone tured business business business syner- system system gies 

integrated management of businesses by center with BUs serving a few weii-defined products/markets with highiy synergistic components 

Diversified companies containing reiated SBUs with synergistic eiements - roies of center can vary between architect and controller  

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