No other organizational phenomenon is as intrinsically tied to the rise of the modern multibusiness corporation as the role of the corporate center. As a result of changing internal and external forces, corporate leaders now face a number of new challenges:
- Adjusting the role and accountabilities of our corporate center according to megatrends affecting our business
- Determining the optimal size of our corporate headquarters
- Efficiently adding value to business units (through vertical synergies) with minimal cost
- Striking a balance between central coordination, local responsiveness, and the entrepreneurial autonomy of our businesses in a global business ground.
Examining the role of the center helps CEOs of companies with ineffectual structures determine the best organizational model for their firm. Centers must be "fit for purpose," with roles aligned to company's business profile, strategy and leadership style, which means that there is no standard formula.
Eurosis Consulting identifies several models for the role of center, based on the relationships among the business units. Having developed a thorough understanding of the advantages and disadvantages of each, we help clients decide which one best suits their needs. We focus on limiting the center's role to where it aligns capabilities, strategy, culture and people.
We address corporate governance at the shareholder, board, and management levels from the lens of capability development and cultural change through five main service areas:
- Defining corporate governance framework
- Refocusing corporate governance on value creation
- Measuring performance and creating accountability
- Creating a complete system
- Creating cohesiveness among management and board members
Our consultants start with an assessment of key functions, comparing the informational, reporting and cost advantages of centralization versus decentralization. As part of this work, we quantify the benefits of moving or maintaining various corporate roles. We then help design a new blueprint for the center, develop ways to communicate the center's role to the organization and set up an ongoing evaluation program.