By Andrew Campbell
Synergy is the company strategist's significant aim - yet why is it so tough to accomplish? The authors of this publication argue that there are 4 biases which stop managers from making sturdy determination. they provide in its place, the assumption of 4 psychological biases as antidotes.
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Synergy is the company strategist's significant aim - yet why is it so tough to accomplish? The authors of this e-book argue that there are 4 biases which forestall managers from making strong choice. they give as an alternative, the belief of 4 psychological biases as antidotes.
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Additional info for Synergy: why links between business units so often fail and how to make them work
Framing is a way of pulling the pieces back together around some common theme that will help the decision-maker choose a better intervention. • The database example ended up becoming a number of different projects each framed around different primary benefits. The first project was a brandvalues project that encompassed much more than the mailings. The project involved defining the brand values and ensuring that policies existed not only for mailings, but for many other parts of the business, including consulting reports, recruitment and telephone handling.
The fourth project was a cost-reduction exercise, aimed at developing reliable cost data for each business for the purpose of internal benchmarking. The data was then compared to external benchmarks. The surprising conclusion of this analysis was that the smaller businesses were more efficient than the larger business because they did not have a dedicated direct-mail activity (it was carried out by other staff in their spare time). Some changes were therefore made in the management of the larger unit to reduce costs.
A second example may further illustrate the importance of disaggregation. A company with three businesses, each offering different consulting and training services, shared a common brand and marketed these services to many of the same customers — human resource functions and senior managers. Noting that each business had its own database of contacts, the group chief executive decided that there would be benefits in combining the databases. When he suggested setting up a central, common contact list, however, the units resisted strongly.