Alignment: Using the Balanced Scorecard to Create Corporate Synergies

CHAPTER THREE

ALIGNING FINANCIAL AND CUSTOMER STRATEGIES

ENTERPRISES CAN CREATE organizational synergies in many ways. Some enterprises leverage financial synergies through effective merger and acquisition policies and skilled management of internal capital markets. Others leverage a common brand or customer relationship across multiple business units and retail outlets. Still others gain scale economies by having multiple business units share common processes and shared services, or they generate economies of scope through effective integration of units across an industry value chain. And finally, enterprises create synergies when they develop and share human, information, and organization capital across multiple units. Corporate headquarters ...