accentre的战略培训教程-corporate parenting strategy

,THE STRATEGY CENTER OF EXCELLENCE,Corporate Parenting/ Portfolio Strategy,The Strategy CollegeJune 1997,IntroductionHistorical and Best Current Thinking,Corporate Parenting Agenda,IntroductionHistorical and Best Current Thinking,Corporate Parenting Agenda,Our objectives:,Provide an overview of corporate strategy and parenting concepts.Explain historical and current best thinking on the topic, including the strengths and limitations of different approaches.Investigate corporate strategy抯 impact on client value.Provide contacts and resources for further exploration.,Corporate Parenting - Introduction,Before we begin a discussion of corporate strategy, we must have clear definitions of the kinds of players involved.,* Source: 揅orporate-Level Strategy,? 1994 Gould, Campbell, Alexander* Source: Dictionary of Finance and Investment Terms, 4th Ed. Barrons 1995,?Definition of Multibusiness Companies, Corporate Parents and Business Units,Multibusiness companies consist of businesses, many of which could exist independently, and a corporate hierarchy of line managers, functions, and staff outside these businesses.*,Businesses units are any grouping of products and services comprising a significant industry, which is an industry representing 10% or more of total revenues, assets, or income.*,The corporate parent is responsible for making overarching corporate strategy decisions. It is the parent which decides what new businesses to support, what acquisitions to make, and whether to form joint ventures or alliances. It is the parent which determines the structure of the corporation, defines budgeting and capital expenditure processes and sets the tone for corporate values and attitudes.*,Corporate Parenting - Introduction,It is important to remember that the corporate strategy is more than the sum of the business unit strategies, and that each affects the other on a continuous basis.,?Definitions of Corporate and Business Unit Strategy,Business Unit Strategy,Corporate Strategy,An integrated set of actions that creates value by:Creating products and services whose value exceeds the cost of providing themCapturing value from competitors, customers, distributors, and suppliers,More than the sum of the business unit strategies, it includes:Demanding long-term performance aspirationsStatements of overall corporate direction which shape business unit strategiesExplicit definition of how the corporate center will add value,Corporate Parenting - Introduction,Future,Corporate Parenting thinking has evolved dramatically over recent decades.,?Evolution of Corporate Parenting Theory,Build portfolio of businesses based on cash generation/needUse share advantage to drive down costs,Themes:,Diversification,LBO/ Shareholder Value,Core Competency,Debt based purchases Shedding of nonessential assets,Manage core businesses, 搒tick to your knittingMatch corporate center role to needs of business units,Experience curveBCG growth/share matrix,KeyFrameworks:,NPV/DCF analysisMcKinsey抯 搑aider抯 pentagon,McKinsey Corporate Center RolesCore competency frameworks,Assumed shareholders could not easily diversify themselvesMisunderstood 搒hared?experienceIgnored all aspects of parenting beyond portfolio shaping,CurrentThinking:,Massive debt drove bankruptcies, underinvestmentIgnored strategic growth opportunities,Tended to be descriptive rather than prescriptiveCore competencies difficult to define rigorously,1970s,Early 1980s,Late 1980s - Early 1990s,?,?,?,Corporate Parenting - Historical Context,Corporate Center costs can be a value-drag; the critical issue is how much value does a corporate parent add to ?or subtract from ?its business units.,* Typically 10% of market value,?NPV/DCF Explanation of Corporate Parenting,BusinessA,BusinessB,BusinessC,Total,CorporateCenterCosts*,CorporateCenterValue-Added,CorporateCenterValue-Drags,TotalCompanyValue,Business Unit DCF Valuations,Corporate Center Impact,Corporate Parenting - The Basics,AC has some examples of solid, significant experiences in Corporate Parenting/ Corporate Strategy.,Engagement Experience,Westinghouse: Role of Corporate Center,Corporate center value creating approachesCorporate center role evolution,Mike PorgesKen MifflinJames Ellis,Individuals?Prior Experience,Various,Various,Tom ShemoBrian Cote,Practice Development,Enterprise Transformation at Ingersoll Rand,Value of change researchRoles of corporate center,Christopher Atkins,Screening criteriaDCF valuation,Various: Acquisition Analysis,Jeff Pennington,Corporate Parenting: Organization Strategy Competence Cell,Roles of corporate centerMatching corporate center role to business unit needs,Business unit value creationPortfolio analysis,Mark Giometti,Discussion on Value Creation Analysis,Iain Somerville,AC Experience Base,Client/Project,Key Themes,Contact,?AC Experience in Corporate Parenting/Corporate Strategy,Corporate Parenting - Best Current Thinking,IntroductionHistorical and Best Current ThinkingCorporate vs. Business Unit StrategyCorporate Center Value-Adding RolesM&A/Alliances,Corporate Parenting ?Agenda,Although theoretical purity provides important context, the critical question is 揌ow can we be helpful?,CEO Perspective,Theoretical 揃est?Answer,Practical Ways for AC to Help,Topic,Corporate/Business Unit Strategy,CorporateCenterRoles,Mergers & Acquisitions,揘eed a corporate strategy, not business unit strategies.? or揅orporate strategy is just the sum of my business unit strategies,Need both,Help CEO understandDifferences between corporate/business unit strategiesQuality of existing strategies, holesWays the corporate center can add value,?AC抯 Role in Helping CEOs,Corporate Parenting - Corporate vs. Business Unit Strategy,The underlying objective of a corporate strategy is to maximize the value of the business. It must answer the following questions:,What skills and resources do I as a parent offer my business units?What parenting role am I playing to bring these skills and resources to bear on each of these business unit children? How much value am I adding? What systems and processes am I using? What is the mapping of these roles, systems, and processes to the size and configuration of my corporate staff?What specific actions can I take to ensure I am adding more value to each of the businesses I own than any other parent while building the depth and breadth of my corporate resources, e.g.,Changes in my portfolio of children through acquisitions/divestitures?Changes in my corporate center:Skills and resources?Roles, systems and processes?Corporate staff size and configuration?,?Questions for Corporate Parents,Corporate Parenting - Corporate vs. Business Unit Strategy,In the ?0s, McKinsey popularized its 揜aider抯 Analysis.? The message: 揗anagement Heal Thyself.,Restructuring a poorly conceived or managed portfolio can create valueToo much debt or short-term focus can lead to no long-term opportunity,Important Takeaways,?Raider抯 Analysis,CurrentMarketValue,CompanyValueAs-Is,Value withInternalImprovements,Value withExternalImprovements,OptimalRestructuredValue,PerceptionsGap,Strategic andOperatingOpportunities,MaximumRaiderOpportunity,TotalCompanyOpportunities,Restructuring/AcquisitionOpportunities,Corporate Parenting - Corporate vs. Business Unit Strategy,Although corporate and business unit strategies contain parallel elements, their content should vary greatly and center around value creation roles.,?Essential Corporate and Business Unit Strategy Elements,Corporate Parenting - Corporate vs. Business Unit Strategy,The definitions of corporate and business unit strategy can be used to asses a client抯 current strategy and suggest areas for improvement.,?Assessing Client Corporate Strategy vs. Best Practice ?Paper Company Example,Area,Best Practice,Client Position,Performance Aspirations,10-year corporate aspirations, measures, goalsShareholder value creationOther constituencies,Generally understood aspirations, e.g.,$100/share, above average returnsTop quartile in safetyEnvironmental leader,Strategic Direction1. Business Scope,Broadly understood statements of 揵usinesses we like/don抰 like,Generally well understood, e.g.,Commodity/cyclicalLow cost producerCapital-intensiveU.S.-basedRelatively concentrated,2. Skills/ Resources,Broadly understood statements of distinctive, leverageable skills and resources that lead to competitive advantage in 揵usinesses we like,Shared understanding of historical low-cost positionLittle shared recognition of 3-5 skills required to win,Strategic Initiatives,Mutual understanding between corporate, business units of actions corporate center will take to add value throughPortfolio shapingSystems/processesSpecific goals, measures of corporate center value,Overall, not well specified/understood/measuredCould be more decisive in acting on divestitures when in shareholders?best interestsUnclear intent, ability of corporate center to add value through systems/processesNo established processes to link corporate/business unit strategiesNone exist; no consistent philosophy; significant controversy,Assess,Possible Steps to Close Gap,Communicate shareholder value goals and timing of expectations widelyDefine specific customer, employee goals as appropriate,Prioritize and explicitly communicate criteriaAdd statements of 揵usinesses we do not like?(e.g., requiring technology innovation),Identify/communicate the 3-5 core skills to win, e.g.,Capital productivityOver cycle tactical pricing/mix managementFront-line productivity improvementHigh-performance managementSupply chain management,Develop and follow up on acquisition/divestiture strategiesDevelop specific initiatives linked to required corporate skills/competencies and implementDevelop and communicate goals/measures,Corporate Parenting - Corporate vs. Business Unit Strategy,Concept of tailoring management approach/corporate center role/corporate center functions to business units is soundMajor potential pitfalls existNot defining true value-adding roles for corporate center based on inherent skillsUsing the framework to justify a too-large corporate center,Important Takeaways,Business Unit Assessment,?Corporate Center Role Definition,Personnel Management,Improvement Programs,Coordination Across Businesses,Functional Guidance,Shared Services,Financial Controller,Strategic Architect,Strategic Controller,Operator,In the late ?0s, the concept of a corporate center playing different roles came into vogue.,Samebusinesssystem,Operator,StrategicController,StrategicArchitect,FinancialController,Operational,Strategicplans,Strategicguidelines,Financial,Standalone,Sharedskills,Sharedbusinesssystem,Nature of Intervention Required,Degree of Interrelationship/Integration,Magnitude/ risk/timescale of decision makingInstitutional maturityBusiness performanceIndustry dynamics,Business portfolioOrganization structureScope of synergy,Corporate Parenting - Corporate Center Roles,Description,Examples,?Four Types of Corporate Center Value Creation Approaches,Source: Corporate-Level Strategy: Creating Value in the Multi-business Company,I.Corporate DevelopmentII.Stand-Alone InfluenceIII.Linkage InfluenceIV.Central Functions and Services,Corporate Center creates value by altering the composition of the portfolio of business unitsCorporate Center enhances stand-alone performance of the business unitsCorporate Center enhances the value of linkages between the business units ?搒ynergyCorporate center provides functional leadership/coordination and cost-effective services for the business units,Buy/sell businessesCreate new businesses internallyCreate new businesses through venturingRedefine businesses by putting together or pulling apartApprove/reject BU strategic plansSetting performance targets/budgets and monitoring aggressivelyApproving major capital expendituresHiring/firing BU Presidents/succession planningCorporate decision-making processes and structuresPolicies and guidelinesTransfer pricing mechanismsPersonal pressureProvide functional expertiseProvide for more effective generation/delivery of servicesAssist line management in exercising stand-alone or linkage influence,There are four fundamental ways that a Corporate Center adds value to its portfolio of companies.,Corporate Parenting - Corporate Center Roles,Each type of corporate center plays a significantly different part in the larger corporation.,Adding undervalued businesses to the investment portfolio, then turning them aroundIntervening by exception to ensure targets are metSelling business at optimum timing/priceDeveloping and refining strategic framework within which business units develop own initiativesIntervening primarily to check business logic and suggest further initiativesBringing to bear superior functional skills in challenging business unitsIntervening to coordinate interfaces/achieve synergiesInitiating and leading most investment and improvement programsIntervening on basis of monthly review of all financial and operational parameters, taking key decisions,Financial ControllerStrategic ArchitectStrategic ControllerOperator,Description (Example),Role,?Corporate Center Role Models,Source: 揇efining a Clear Role for the Corporate Center.? McKinsey Staff Paper, March 1990/No. 48,Corporate Parenting - Corporate Center Roles,The four basic types of corporate centers differ in the types of roles they play to add value to their portfolios.,I.Corporate Development,II.Standalone Influence,III.Linkage Influence,IV.Central Functions and Services,Strategic Architect,Few opportunistic acquisitions based on strategic fit, skill transfer,Many acquisitions; based on strategic fit, business creation,Continuous acquisitions,Corporate center reviews business unit strategic plans and proposed targets,Joint strategic planning and target-setting,No strategic planning,Few formal mechanisms to facilitateModerate personal pressure,Many formal mechanisms to facilitate (e.g., transfer pricing, policies)High degree of personal pressure,No linkage influence,Shared services are only used where unique or unavailable,Common usage of shared services for synergies/ economies,No shared services,Strategic Controller,Financial Controller,Operator,Very few acquisitions based on cost reduction, geographic expansion,Center develops plans and budgets,Runs interfaces to ensure linkages exploited,High degree of shared services,Very few divestitures,Few divestitures,Continuous divestitures,Very few divestitures,Center monitors key strategic/financial measures,Center monitors multiple strategic/financial measures,Top-down target setting,Center monitors multiple financial/operational measures frequently,Long-term view of capital expenditures,Long-term view of capital expenditures,Center stringently monitors financial measures,Long-term view of capital expenditures,Short-term view of capital expenditures,May be located in corporate or in business units,May be located in corporate or in business units,Located in corporate,?Diverse Roles of Each Corporate Center Model,Corporate Parenting - Corporate Center Roles,The type/roles of a corporate center determines its ideal size.,?Example: Sizes of a Corporate Center Under Various Role Options,Operator,Strategic Controller,Strategic Architect,Financial Controller,Can clarifying the best role for the client抯 corporate center yield a headcount reduction?,Corporate Parenting - Corporate Center Roles,Total Sales ($ million),53,19,8,The varying approaches of parents in managing their children result in substantial differences in the roles and sizes of their corporate headquarters.,Shell,ABB,Hanson,桟orporate Center Management,Companies,CorporateCenter,Central FunctionsSize,Functions,Profit/Cost Center,Influence (Advisory, Directing),4,000 people,100 people in corporate headquarters1000 people in decentralized corporate parenting, comparable to traditional corporate center activities,100 in UK50 in US,25 functions across countries and businesses with matrix responsibilities,18 functions across countries and businesses with matrix responsibilities,15 purely functional departments in UK,Mainly cost centers,Mainly cost centers,All cost-centres,Mainly directing, BUT also advisory,Mainly advisory (benchmarking, best practice, implementation guidelines),Purely directing (appointment of key people, interim management, financial control),Role,Strategic Architect,Strategic Controller,Financial Controller,Corporate Parenting - Corporate Center Roles,StrategicController,Importance of Function to Business Unit Strategy,Commonality of Service Requirements Across Businesses,High,High,Low,Low,Operator,In defining whether a function/service should be shared, we must analyze its cost-reduction potential, strategic importance to the business unit, and the desired corporate parenting type/roles.,?Assigning Functions/Services,When should approaches differ by business unit (e.g., what if systems are only appropriate for 80% of business units)?Where should shared services be located?,Corporate Parenting - Corporate Center Roles,Other Issues,StrategicArchitect,The role definition will also provide guidance in defining how each function can be deployed at the Corporate Center.,?How General Electric Aligns Functions with its Corporate Center Strategy,Degree to which ServiceLevel Requirements AreCommon Across Product Lines,Degree to WhichFunction Is Critical toSuccess of Business Strategies,Note:Large size ofbusiness unitsmake scaleeconomies a lesscritical issue,Wide variations in customerbases, business environments,and P&L profiles indicate needfor decentralized receivables,applications development,and ledger functions,General Ledger,Applications Deve