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« CEO Morning Report
Twenty Hubs, No HQ
Still on business academia from yesterday, are you savvy with the Trump University pedagogy? With recent posts such as "High Self-Esteem Isn't Always Healthy" and "Babies in the Office," I thought I had stumbled onto Rosie.com instead. For breakthrough thoughts with a bit more hair, there is the always-smart custom publication strategy+business from Booz Allen Hamilton. A note on the 94-year old company, said to be the world's longest continuously operating management consultancy: just this month, it divided into two distinct and separately operated enterprises. The U.S. government–related business, based in McLean, Va., retains the Booz Allen Hamilton name; Booz & Company, in New York and London, becomes the global commercial side of the business. Writes Booz & Co. CEO Shumeet Banerji in an introductory letter in s+b: "On a recent flight from Mumbai to London, I noticed half a dozen CEOs heading to Europe to buy companies. I don’t think they were worrying about whether credit markets would provide them the leverage for these transactions. Ideas no longer flow just from developed countries to emerging markets; sunrise industries are blooming in areas that seemed like backwaters a few years ago." Indeed. The same issue has a strong read on how multinational corporations can best organize operations to capitalize on growth prospects in Asia, Latin America, Africa, and Eastern Europe, rated at more than 4 billion new potential customers. One strategic flaw among corporate leaders—the view of new markets as “emerging markets” separate from their existing customers in the industrialized world. The solution? A global organizational model built around “gateway” country hubs, effectively “networking” the corporate headquarters around the world. C.K. Prahalad and Hrishi Bhattacharyya, you’re hired. Jeff Heilman 5/29/08
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