McKinsey Quartlerly: New article: Organizing to manage complexity
http://www.mckinseyquarterly.com/article_abstract_visitor.aspx?ar=1689&L2=18&L3=30&srid=17&gp=0
Article at a glance:
Strategy in an era of global giants
? The world's largest corporations are greatly increasing their
scale and scope, and the resulting mega-institutions are fundamentally
changing the landscape of business.
? These mega-institutions have disproportionately high profits and
market values because they understand the link between their profitability
and the talents of their professionals and knowledge workers.
? Mega-institutions are pioneering a new model of competitive
advantage by using their huge size to develop and exploit intangible assets
in novel ways.
? The corporate strategists of these companies must now develop new
performance metrics and business models as well as find ways of overcoming
the organizational barriers that size creates.
This article includes the following exhibits:
Exhibit 1: Mega-institutions are developing extraordinary scale
Exhibit 2: Book value is shrinking for the top 150 companies
Exhibit 3: Increasing income with fewer employees
Exhibit 4: Increasing returns on net income per employee
Exhibit 5: The leaders achieve higher levels of profit per employee
Sidebar exhibits: How complexity affects business
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