The future corporate center: Functional efficiency runs in the family

In the corporate center, efficiency begets efficiency—and inefficiency begets inefficiency. The trick is to get more of the former and less of the latter.

Executives everywhere want to make their companies more efficient. But moving an entire firm toward efficiency is a big project. A manager might not have the right resources. Maybe she won’t be there long enough to see the job through to completion, or maybe he doesn’t have buy-in from the rest of the organization.

There’s good news for executives in this position. Our research shows that leanness in the corporate center is an indicator for overall efficiency in the general and administrative (G&A) functions. Accordingly, transformational work in the corporate center can serve as a beacon for the entire company. In addition, we now have evidence that efficiency in one functional area of the corporate center implies efficiency in other functions.

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Πηγή: mckinsey

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