This PPT slide, part of the 97-slide Strategic Cost Reduction Training PowerPoint presentation, outlines best practices for business and operating models, focusing on how different organizational structures can impact centralized and shared services. It categorizes these models into 4 distinct types: Holding Company, Strategic Guidance, Strategic Control, and Integrated Operating Company.
For the Holding Company model, the executive leadership plays a crucial role in setting and monitoring financial targets while also delegating operating decisions. This structure is characterized by stand-alone business units and central services that operate independently.
In the Strategic Guidance model, the emphasis shifts to coordination. Here, the leadership not only sets and monitors objectives, but also provides input for some operating decisions. The general management team is involved in this model, indicating a more collaborative approach compared to the Holding Company.
The Strategic Control model takes a more participative stance. Leadership participates in the development and implementation of business strategies and is involved in all major operating decisions. This model suggests a significant level of oversight and integration among various business units.
Finally, the Integrated Operating Company model represents a more centralized approach. Leadership develops plans and policies while making major operating decisions. This model indicates that a vast majority of operational decisions are made at the top, with a focus on cohesive execution across the organization.
Understanding these models can help organizations assess their current structure and identify areas for improvement, particularly in how they manage centralized and shared services. Each model presents unique implications for decision-making and operational efficiency, making this analysis critical for strategic planning.
This slide is part of the Strategic Cost Reduction Training PowerPoint presentation.
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Cost Reduction Assessment Strategic Planning Cost Reduction Organizational Structure Best Practices Holding Company Leadership
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