how should a corporation attempt to achieve synergy among functions and business units?

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As a corporation, should you attempt to achieve synergy among functions and business units? The answer is an obvious “Yes.” In an ideal world, the corporation would be a team. There should be one leader that has the overall vision and strategy, several key employees with the key responsibilities, and a whole lot of employees that can work flexibly and efficiently within the structure. In reality, the company doesn’t have to be that way.

As a corporation, should you attempt to achieve synergy among functions and business units? The answer is an obvious “Yes.” In an ideal world, the corporation would be a team. There should be one leader that has the overall vision and strategy, several key employees with the key responsibilities, and a whole lot of employees that can work flexibly and efficiently within the structure. In reality, the company doesn’t have to be that way.In many cases, the company is a team of multiple subsidiaries. And the idea of synergy makes sense at first glance. For example, one could say that a company can achieve synergy between functions that are under one CEO.

As a corporation, should you attempt to achieve synergy among functions and business units? The answer is an obvious “Yes.” In an ideal world, the corporation would be a team. There should be one leader that has the overall vision and strategy, several key employees with the key responsibilities, and a whole lot of employees that can work flexibly and efficiently within the structure. In reality, the company doesn’t have to be that way.In many cases, the company is a team of multiple subsidiaries. And the idea of synergy makes sense at first glance. For example, one could say that a company can achieve synergy between functions that are under one CEO.That’s not how it works though. The reason synergy doesnt work is because the CEO has a lot of power and the subsidiaries tend to function separately. And as with any hierarchical structure, the bigger the hierarchy, the less flexibility there is. This means that the CEO can more easily take charge of subsidiaries that are performing poorly, while those that are doing well can be stuck in the middle.

As a corporation, should you attempt to achieve synergy among functions and business units? The answer is an obvious “Yes.” In an ideal world, the corporation would be a team. There should be one leader that has the overall vision and strategy, several key employees with the key responsibilities, and a whole lot of employees that can work flexibly and efficiently within the structure. In reality, the company doesn’t have to be that way.In many cases, the company is a team of multiple subsidiaries. And the idea of synergy makes sense at first glance. For example, one could say that a company can achieve synergy between functions that are under one CEO.That’s not how it works though. The reason synergy doesnt work is because the CEO has a lot of power and the subsidiaries tend to function separately. And as with any hierarchical structure, the bigger the hierarchy, the less flexibility there is. This means that the CEO can more easily take charge of subsidiaries that are performing poorly, while those that are doing well can be stuck in the middle.This is a problem that can be solved by establishing a single CEO and a hierarchy of departments. The question is how to do this. One approach would be to have a division leader who has the power to direct subsidiaries and to set company-wide goals. But this is not always possible, because it would mean that the division leader has to be extremely close to the headquarters in order to make this power work. There are other ways to achieve a degree of synergy.

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