Joining accommodating unbalancing tracking and boundary making
The research team interviewed all members of top management involved in key decisions.
Particular periods in each company’s history or events that represented a significant change in business mission, strategy, or goals became the focal point of research.
This article is based on a three-year research study, undertaken with Professor Jay Lorsch of the Harvard Business School, of the formation of corporate goals in 12 large U. Each manufactures and sells a range of products and represents a different industry, from basic raw materials to high technology.
Some are privately owned, but most are publicly traded on the major stock exchanges.
As competition erodes that position, however, companies can succeed only if they continue to fund the investment necessary to maintain a healthy share of market even when that is accompanied by a declining ROI.
My study of organizations like Company A has revealed certain characteristics of the corporate financial goals system that have often been overlooked and that contribute to misunderstanding of the goal-setting process.
Though the research sample and the data cannot be described as conclusive, they represent a valid basis from which to challenge a number of commonly held beliefs about corporate goals on the part of both academics and leaders in the business community.In practice, they are deeply rooted in the CEO’s values and […] " One of the primary responsibilities of the CEO of any major corporation is to articulate the company’s financial goals as a tangible focus for its business mission and strategy.In practice, they are deeply rooted in the CEO’s values and political philosophy, and they draw persuasive power from the depth of that conviction.One level down, the manager destined to be the CEO’s successor had a different vision of the business.As he rose through the ranks of line management, he saw a number of the company’s principal product lines gradually mature and their markets develop the traits of a commodity; high sales volume, low costs, and declining profit margins now characterized a sustainable competitive position. For this manager, the corporate growth rate was equal to, if not more important than, ROI as the focus of corporate strategy.