What is the proper balance between long-term and short-term goals in developing an effective corporate strategy?
This Note describes the elements of the “internal arc” that explains the six tests of corporate advantage. The arc is comprised of elements describing the firm’s organizational structures, management systems and organizational processes (OSSP). Those elements are placed in the arc’s center, with special attention given to the longer-term goal of renewing corporate resources (through coordination) as well as the short-term goal of maximizing performance (through controls). While all of the elements of the diversified firm’s OSSP are important to implementing corporate strategy, this Note argues that the balance between controls and coordination is the most salient.
Case ID: 160414