The power of an independent corporate center - McKinsey Quarterly - Strategy - S...

Posted on by Brandon Klein

The independent, hard-nosed perspective that executives need to make decisions about a corporation’s businesses is often elusive. It can’t be delegated to the business units, whose managers have competing interests and may lack a corporate-wide perspective. Nor can it be folded into the existing strategy process, which is frequently a bottom-up, business unit–oriented exercise that starts with the assumption that each unit’s claims on capital and resources won’t differ significantly from year to year.