It's become a business imperative to maximize operational effectiveness, trim costs, standardize and streamline processes, achieve economies of scale and increase competitive advantage. Today's most successful leaders do this in a way that balances the greater good of the enterprise with the competing demands of their autonomous businesses that must respond to the individual needs of their markets. A more collaborative model that helps leaders of complex businesses to maximize effectiveness is gaining traction. Four prominent business leaders discuss their challenges and successes in shifting to this shared business model.
CEO round table
improving
performance
through a shared
business model
A more collaborative model that helpsleaders of complex businesses to maximizeeffectiveness is gaining traction. Fourprominent business leaders discuss theirchallenges and successes."We collaborate on things that make sense to col-laborate on and we keep separate things thatshould or need to be separate. It allows us tomake more efficient and effective those things -activities, functions in the company - that cus-tomers don't see and that don't really matter."
Jerry JurgensenCEO, Nationwide
a one-company pespective is key to maximizing potential
It's become a business impera- The struggle occurring in many organiza- divisional vision, structure and culture totions is between business unit autonomy include a broader view of the company.tive to maximize operational and corporate control. Many people see Eliminating the inherent conflict and intro-only two options: a fully integrated struc- ducing new habits of working can only beeffectiveness, trim costs, ture with little autonomy or a holding done on an individual leadership and teamstandardize and streamline company model with near full autonomy. level.
processes, achieve economies The Shared Business Model draws from Ensuring that divisional leaders andemployees adopt a one-company perspec-of scale and increase competi- the best of both options. Things that arecritical to a business, division or geogra- tive is crucial if a Shared Business Model istive advantage. Today's most phy are largely within their control. At the to achieve its maximum potential.same time, where customers can be bet-successful leaders do this in a ter served or economies gained, the com- Some Reasons CEOs Decide to Shiftway that balances the greater mitment is there to do that. A commit- to a Shared Business Modelment to the greater good versus a self-good of the enterprise with interest mindset is the overriding cultural You feel your company has the poten-tial to be even greater, but you aren'tthe competing demands of imperative. reaching the peak performance thattheir autonomous businesses Leaders who have most successfully comes from an aligned leadership thatadopted this Shared Business Model strat- shares best practices and makes deci-that must respond to the indi- egy share one common denominator - sions for the greater good of thethey led change from the top and did not enterprise.vidual needs of their markets. delegate to a functional leader, such as IT, You have successfully grown through aFinance or HR. They have learned that number of acquisitions, and now youmoving to a Shared Business Model are wrestling with redundant services,requires that employees develop new silos and legacy mindsets, unalignedcompetencies and skills with an increased visions and values and 'sibling rivalry'emphasis on open communication, trust, that is counterproductive to your con-common language, flexibility and focus on tinued success.internal customer service. These compe- Your organization has been operatingtencies and skills were not always neces- as a portfolio of autonomous, self-con-sary when each division had full opera- tained businesses, and you want totional autonomy. enhance synergies as a more cohesivecompany with products, geographiesSuccess is dependent on realigning their and service lines operating with a more
CEO roundtable: improving performance through a shared business model [2]aligned, strategic intent and a shared and a mindset that is being used by more To get a better perspective on how thevision and culture. and more organizations. The model is a Shared Business Model has been success-synergistic, collaborative approach to fully implemented, we conducted a seriesYour company is complex, has regu- leverage people, knowledge, leadership of interviews with four highly regardedlated and unregulated components, and resources across the organization to leaders.and needs to improve business per- ensure that each piece of the businessformance, become more competitive contributes to system-wide value. In this round table, they discuss the chal-and innovative and maximize prof- lenges and successes of their operationalitability. Companies adopting this strategy can restructuring efforts and the lessons theyrealize significant cost savings, customer learned so far on their continuing jour-Many CEOs of major companies today focus and improved busine... [download for more]
