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Re-considering Corporate Headquarters

2013

Headquarters need to demonstrate that they add value to the business in order to justify their existence. Around the world, companies are redefining the role of their headquarters, which includes turning corporate centers into key drivers of operations. Furthermore, they are increasingly assuming functions that go beyond representation, management and governance. "Corporate headquarters are growing in size and are managing increasingly complex systems within the group," says Tim Zimmermann, Partner at Roland Berger Strategy Consultants.

Besides traditional tasks such as finance, accounting and controlling, HQ must focus more heavily on 5 key capabilities: providing strategic direction, managing complexity, driving innovation, working in global networks and ensuring the execution of actions worldwide. If headquarters can successfully provide these services, they can avert conglomerate discount and contribute real value.

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The co-author of this think: act CONTENT, Fabian Huhle, talked to management radio about corporate headquarters. Listen to the interview here.  

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