Formulating policy with a parallel organization: how a CEO integrated independent divisions

Autor: Thomas F. Hawk, Dale E. Zand
Rok vydání: 2010
Předmět:
Zdroj: Strategy & Leadership. 38:33-38
ISSN: 1087-8572
DOI: 10.1108/10878571011072066
Popis: Purpose – Division managers in multi‐division, production organizations often focus primarily on their division's interests and goals and as a result may not be well motivated or equipped to formulate optimal, company‐wide policies. In this case study, a new CEO decided to deal with ambiguous, company‐wide policy issues such as pricing, product portfolios, market position, and communication across independent divisions, by installing a parallel organization composed entirely of line managers from different divisions and functions. This paper aims to examine the parallel organization concept and how it was applied, installed and operated to greatly benefit the firm.Design/methodology/approach – The case describes the operation and outputs of the parallel organization based on data gathered from interviews of managers and detailed analysis of proposed issues and policies formulated over a five‐year period.Findings – The firm's performance improved significantly as the parallel organization generated policie...
Databáze: OpenAIRE