Centerless Corporation: Global Core (free Business e-Coach)

Your first-ever Business e-Coach - discover synergies and Make a Difference!

Welcome to the brief & free version!

You Your Venture V-Financing Management Leadership Organization Growth Innovation Efficiency Marketing Competing

Home Search Map Slide Shows Iceberg of Opportunities MBS Model Agreements Case Studies Jokes Tests Full Version

New Business Model:

Centerless Corporation

The Global Core

The Heart of the Centerless Corporation

Source: "The Centerless Corporation", by Bruce A.Pasternack and Albert. J. Viscio, 1998. Executive summary by Vadim Kotelnikov

"When the Master rules, people cannot make note of his existence" - Lao-tzu

Five Missions of the Global Core
Mission	Objective
Identity	To formulate a vision and a set of shared values To create the most favorable and strongest corporate identity possible in each relevant constituency
Capabilities	To act as a sourcing/disseminating "market maker" to ensure corporatewide access to world-class, low-cost capabilities To provide "matrix capabilities" in nonmatrix organizations
Capital	To minimize cost of capital and fund growth
Strategic Leadership	To provide the vision, leadership, and purpose for growth Initiate "outside-the-box" thinking to generate future growth
Control	To exercise control on behalf of the board and the shareholders To understand and manage the risks of the business
Core versus Center
Center suggests something that is in the middle a holdower of the command-and-control model information flows into it and directive flows out of it Core suggests a sense of essence and purpose, of heart creates the context for growth ensures that the pieces are in place for growth and that they are working effectively and not clogging up the works sets the tone, while not always beating the drum adds value, not sheer overhead

Related Chapters of the Business e-Coach:

Centerless Corporation

Business Enablers

Global Core Defined

The heart of the Centerless Corporation is the Global Core, which is a revolutionary overhaul of the old corporate center or headquarters. It is:

global in the sense that it is responsible for key missions across the entire geographically dispersed corporation;
a core because it is meant to impart value to all of the other elements of the model, and not simply add excessive overhead.

The Core is not a Center

The Global Core is not a center because the execution of its missions is distributed across the numerous pieces of the corporation. The global nature of business makes it imperative that companies perform many Core activities close to where they are needed. Technology enables this to happen. The Core's role is to add value where business units cannot.

Lean Structure

The Global Core has a lean structure. It is far smaller than the traditional corporate center and has high leverage in the things it does. The Global Core consists solely of the CEO, his or her team, and only those services necessary to add value to the corporation. There are no centralized services. For instance:

Human resources component deals strictly with high-level strategy, leadership development and allocation of key people, while things like benefits and payroll administration are carried out in the Business Units;
Public affairs component deals just with corporate identity, not with brand management.

Contact info Check what we can do for you Advertise Partner with us Become an Author Become a Sponsor