Corporate Strategy
Corporate strategy, or creating value across different businesses, isn’t solely a matter of chasing the highest returns. It’s also about understanding your company’s strengths and how they can make a difference in where you choose to invest. An organization of complementary assets and well-choreographed capabilities is in a better position to deliver consistently superior performance over time.
A key challenge, however, is that the underlying theories – good value investments for growth, smart resource allocation, portfolio synergies and performance improvements – tend to bump up against the realities of organizational behavior. As a result, making difficult choices about where to focus is only part of the solution. The other part is designing the operating models, systems, processes and capabilities that make it possible to deliver value beyond the sum of the collective businesses.
How we help
We help senior executives decide on their corporate goals, and which individual businesses will allow them to meet their strategic objectives and help the company succeed as a whole. Among other things, we work with you to:
- Create a coherent set of objectives and goals for the corporate entity
- Understand the drivers of each business unit’s current performance
- Determine whether the company’s share price appropriately reflects the value of all business units and management's plans for them
- Identify linkages between different businesses
- Define the role of the center
- Determine which businesses have the potential to grow
- Identify units to turn around, spin out or sell
- Find additional ways to profit, or gain market share, from what your organization already does well
- Seek out acquisitions that can strengthen or extend existing businesses
- Strategically allocate capital among business units
Your benefits
- Stronger alignment between strategy and the allocation of scarce resources
- Improved efficiency via shared resources and reduced duplication of effort
- Reduced risk through diversification across complementary businesses
- Better balance between short- and long-term objectives
