Creating value across different businesses (or divisions) isn’t solely a matter of chasing the highest returns. It is 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, this doesn’t only require you to make difficult choices about where to focus, but also require you to design the operating models, processes and capabilities that make it possible to deliver value beyond the sum of the collective businesses.
How We Can Help
We will help you decide on your corporate goals and individual businesses (or divisions) to focus on that will allow you to meet your strategic objectives and help the company succeed as a whole.
We will work with you to:
- Create a coherent set of objectives and goals for the corporate entity
- Understand the drivers of each business/division current performance
- Determine whether the company’s current revenue appropriately reflects the value of all businesses/divisions.
- Identify linkages between different businesses/divisions.
- Determine which businesses/divisions have the potential to grow.
- Identify businesses/divisions to turnaround, spin out or sell.
- Find additional ways to profit, or gain market share, from what your organization already does well.
- Strategically allocate capital among businesses/divisions.
- 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/divisions.
- Better balance between short and long-term objectives.