The Multilocal Challenge: Managing Cross-Border Functions

Companies are learning to adapt their organizational design to capture cross-border synergies and to protect local sources of profitability. Striking an appropriate balance between the protection of local value and the integration of selected cross-country processes and functions is challenging; the organizational response to create the right linkages must be subtle and avoid blunt centralization. Companies should also consider geographic clustering, ensure clear accountability where it really matters - in linchpin roles - and build common ways of working in critical cross-border processes while allowing the local units to maintain their own cultures. These principles will help to limit the complexity and ambiguity often felt during the formation of multilocals.

Provided by: McKinsey & Company Topic: Mobility Date Added: Mar 2008 Format: PDF

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