Designing The Global Corporation

Delivering seamless service to the global customer is reshaping the structures of multinationals. This book reports on what the leading companies are doing to respond to the challenge of the global customer.

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"In a time of growing complexity, Jay Galbraith provides concise and valuable insight into an issue that continues to puzzle managers the world over. A must-read for anyone with operational responsibility."
-- Helmut Maucher, Chairman, Nestlé S.A.

"The best reference source available on designing and making complex multinational organizations work."
-- Nathaniel Foote, Organization Design Practice Leader, McKinsey & Co.

"Once again, Jay Galbraith presents nuggets of insight for any senior manager leading global organizations!"
-- Susan Bowick, Vice President, Human Resources, Hewlett-Packard Company

"Until now there has been no clear, useful approach to problems of global organization design. In "Designing the Global Corporation," Jay Galbraith once again displays the insight and clarity of thought that has earned him his acknowledged position as the world's leading authority on organizational design."
-- William F. Joyce, Vice President, Professor, Tuck School of Business, Dartmouth College

"A landmark book in many respects. Key issues such as flat networks, project teams, power shifts, and serving the global customer are all covered with great insight."
-- Peter Lorange, President, International Institute for Management Development, Lausanne, Switzerland

1.The Organizational Complexity Challenge
Simple vs. Stupid
Managing the Multinational
Consequences of Foreign Direct Investment
2. Organizing the Global Corporation
Structure to Network Organization
Factors Shaping the Organization
3.Levels of International Development
The Transfer of Competitive Advantages
Levels of Internationalization
The Process of Internationalization
4. Partnering
Choosing the Partnership Mode
The Partnering Process
5.The Geographic Division
Why a Geographic Division?
The Tasks of the Geographic Division
Subsidiary Autonomy
Examples of the Geographic Division
6. Multidimensional Structures
Single Business
Multi-Business Company
7. Coordination Across Networks
The Lateral Organization
Building Networks
Human Resources Role
Case Study: Australian Multidomestics
8.Formal Cross-Border Networks
Formal Groups
Business Coordinators
9.Shifting Power Across the Network
The Case of 3M
Reasons for Differentiation
10.The Transnational Form
Why a Transnational?
Transnational Organization Design Issues
Case Study: The Verifone Company
11.The Multidimensional Multinational: Reconfigurable Organization
Requisite Complexity
Organizing for Complexity
Building Capacity
12. Organizing to Serve the Global Customer
Organizing Around the Customer
Global Customer Teams
Global Account Coordinators
Matrix Structure
Organization by Customer
13.The Front-Back Hybrid Organization
The Front-Back Structure
Forces Creating the Hybrid Structure
Implementing the Front-Back Hybrid
14.A Look Ahead
A Sixth Level?
The Future of Globalization
AppendixThe New Global Process of New-Product Development
Evolution of New-Product Development
Pressures for Global Products
The Global Development Process
Product-Development Organization

What People Are Saying

  • “A unique organization structure creates advantage. The key advantage of our structure is that the MDOs [Market Development Organizations] can focus 100% of their resources on local customers and customers without duplicating product innovation, product sourcing, brand advertising or other activities that are now led by the Global Business Units. We have eliminated inefficient overlaps and, as a result, freed up resources to collaborate better with customers and focus exclusively on winning in local markets.”

    — A.G. Lafley, Chairman of the Board, President and CEO, Procter & Gamble. 2004 annual report, pp7-8.

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