The following articles were written by Strategy& partners and other senior professionals on key topics in the organization and change sector.
GCC companies must develop powerful capabilities through internal development, mergers and acquisitions, or partnerships if they want to maintain their growth and improve their positioning. As most large GCC companies are linked to the state, governments need to assist by upgrading corporate governance practices.
The GCC countries are in a fiscal crunch. All GCC governments have announced spending cuts, but conventional strategies, such as across-the-board or narrowly focused cuts, could do irreparable harm to GCC countries’ economic and social development. Instead, they need a more effective approach — one that enables them to cut costs and grow stronger simultaneously. This approach is called Fit for Service.
Most large organizations struggle with bureaucracy, which can slow a company’s ability to respond to market changes and distract the company from building the differentiating capabilities it needs to grow. To address this problem, we have developed the Bureaucracy Measurement Index, a quantitative means to assess the level of bureaucracy within a company, compare it to benchmarks for that industry, and highlight problem areas.
GCC business leaders seeking to compete with best-in-class companies abroad should rigorously harness the emotional energy of their organizational culture. Using elements of their current cultures, they can alter critical behaviors. These then accelerate the cultural evolution that ensures strong corporate cultures that can enable and accelerate strategic and operational changes.
Strategy&’s Fit for Growth* approach offers telecom operators a path to growth and profitability. The overall goal is for operators to focus their resources so they can lead from their strengths — whether that means network operations, service platforms, or customer experience.
n the Middle East and North Africa (MENA) region, as elsewhere, the economic crisis is changing the way that companies do business. For the CFOs of MENA-based companies, it is causing an evolution in their roles. In a survey of regional CFOs, we found that their major priorities involve leading their organizations through the economic crisis while capturing potential growth.
To navigate the global downturn and even prosper in the process, corporate leaders must take a step back and consider how best to implement long-lasting and effective initiatives aimed at fundamentally improving the way their companies operate.
The value of shared-services organizations will be in their ability to work closely with internal customers to identify needs and to effectively source appropriate services on the open market. This requires new capabilities in areas such as strategic sourcing, development of third party alliances, and application of e-commerce techniques to match internal demands with external suppliers.
Shared services is a model for delivering corporate support, combining and consolidating services from headquarters and business units into a distinct entity based on market-like principles. Winning companies will mobilize capabilities in support of market objectives, including support services for internal customers.
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Peer into the hallways of any business unit, and you will likely find "shadow staff", people performing tasks that duplicate those performed elsewhere in the organization. No matter the industry, shadowm staffs lurk in the corners of most large enterprises. Once brought to light these positions can add another 30 to 80% to total support staff head counts.
Companies have invested millions of dollars and accumulated years of experience in running highly efficient internal shared services operations. Now many are wondering how to unleash the next wave of value. Many believe that the next breakout strategy will take the form of an extended enterprise play, in which shared services will move beyond the walls of the corporation, either as a seller of services to external customers or as a buyer and aggregator of external services for internal clients.
* Fit for Growth is a registered service mark of PwC Strategy& LLC in the United States.