Discover corporate center value

Discover corporate center value

 

Add value and efficiency with a tailored corporate center structure

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People & Organization

In today’s fast-changing business environment, companies face continuous challenges and opportunities that require them to reassess the role of their corporate center. These may be internal events such as a new shareholder structure, rapidly growing business units, a new strategy or cost pressure. External factors, including new clients, changing market dynamics or shifts in customer demands, can also trigger change. Companies sometimes review their main content priorities during periods of major transformation to maintain clarity and alignment or to boldly rethink how they create value across the value chain.

A corporate center is the central unit that sets direction, manages portfolios and provides shared services that support the business. Some companies also use the term “corporate place” to describe the physical or virtual setting where this work takes place. The term “corporate office” is often used in a narrower sense to refer to the primary physical location where headquarters teams sit and where corporate functions are coordinated. Some refer to these locations collectively as corporate headquarters.

No one-size-fits-all model exists, even within industries. The corporate center defines roles and governance, while the corporate office and broader corporate place act as the operational hubs. In practice this can be a single headquarters, a distributed set of offices or a hybrid setup that mixes onsite and digital collaboration. On the other hand, companies with more decentralized operations often use multiple hubs for coordination.

Corporate consulting refers to the advisory work that helps companies shape, redesign or strengthen their corporate center so it can steer the business effectively, allocate resources, support strategic direction and enable long-term performance.

Whatever setup the company chooses, success lies in balancing value creation with cost efficiency within a tailored corporate center structure that is aligned with the company’s strategic goals. An effective structure also supports value-adding activities that strengthen the competitive advantage of the firm, helping the organization build a more sustainable and resilient operating model for the long-term. Our consulting services help companies master this complex balancing act.

The need for greater flexibility

In the search for the right corporate center structure, two key questions arise: How does the corporate center add value? And is it growth-ready or too costly? These questions drive the trend toward flexible, differentiated structures such as hybrid models that merge roles for adaptive business steering. Business units prefer dedicated roles and strategic communities over rigid structures. Autonomy combined with central steering enhances performance and innovation. Digitalization in shared functions boosts productivity, reduces costs and improves service quality, especially in consumer goods and other fast-moving sectors. These shifts often require careful resource planning to avoid bottlenecks.

Added value and increased efficiency

"An effective headquarters structure must strike the right balance between value creation and cost efficiency."
Cyrus Asgarian
Senior Partner
Frankfurt Office, Central Europe

Whatever the industry, an effective corporate center structure balances value with efficiency and is fully aligned with the company’s portfolio and strategic goals. Models vary, with centralization offering control and standardization, while empowered units provide speed and differentiation. Clear strategic imperatives guide how responsibilities are allocated and how functions are structured. This perspective is central to business strategy, especially in companies pursuing acquisition-driven expansion.

Corporate center setups differ in terms of functions, services, roles and staffing. Often, they are shaped by strategy and by the presence of legacy structures and past investments. Effective structures define clear governance to maximize synergies, manage portfolios and streamline functions. An effective corporate center supports strategic direction, enhances collaboration, fosters innovation, develops talent and facilitates opportunistic growth, regardless of whether the organization follows a centralized or more organizationally distributed model. It also enables targeted cost reduction where appropriate.

How we help redesign the corporate center

Roland Berger’s proven four-step approach helps companies redesign and build a best-in-class corporate center.

Step 1: Assess

We begin by evaluating the current setup. This clarifies the existing level of control and capabilities compared to the desired state. A step that cannot be skipped is defining the expected role and value-add of the headquarters, aligned with corporate strategy, business interdependencies and stakeholder expectations.

Step 2: Assign

We compare the target role with relevant models and select a suitable role for the headquarters. We then outline the capabilities required to deliver the target role and achieve the desired performance levels.

Step 3: Align

We cluster and allocate activities to define the desired functional scope of the headquarters. Evaluating individual functions at the holding, segment or service level helps reduce the amount of duplicated work and avoid efficiency losses.

Step 4: Adjust

In the final step, we detail the tasks of each function within the headquarters. Based on this scope and relevant benchmarks, we determine the target headcount per function. We then create a consolidated target picture and assess its financial impact, making adjustments where necessary to authority allocation, governance structures and reporting and communication interfaces between the headquarters and business units or shared services.

Success stories

Creating a leaner, more agile corporate center for a multinational automotive company

Situation: A global automotive OEM with approximately 170,000 employees needed to respond to numerous industry shifts and changing mobility trends and technology. A challenging business environment required a reassessment of the strategic role of its headquarters.

Solution: We supported the client in developing a plan to overhaul its headquarters, transforming it from an operational to a strategic holding company. This shift created greater flexibility for joint ventures and divisional IPOs through new, independent companies.

Impact: Together, we established a lean and efficient HQ structure and launched independent NewCos to enable divisional IPOs.

Redesigning the headquarters of a major aviation group

Situation: A global aviation group with approximately 100,000 employees came to us with the need to adapt and strengthen the organization and simplify its governance.

Solution: We helped the client define and establish a new, lean headquarters aligned with a shift from an integrated corporate center into an architect role, dissolving the double function of Group HQ and Airline HQ. The focus was on increasing decision-making speed, improving efficiency and reducing the complexity of the existing governance structure.

Impact: The client received a clear target structure for its headquarters, including headcount and scope of activities, as well as migration plans for personnel and activities.

Reshaping the headquarters of a European mass media company

Situation: A new ownership structure led one of Europe’s largest mass media firms, with approximately 18,000 employees, to ask us to restructure its headquarters. The goal was to empower business units and reduce overhead costs.

Solution: Drawing on our international expertise, we developed a new role and structure for the client’s headquarters, outlining a target for its activities and headcount. We also set up a monitoring platform to track implementation progress.

Impact: After implementing the changes, our client reduced its headquarters headcount by approximately 80% and cut costs by around 20%.

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