Two managers in the Power Tools division of German multinational corporation Robert Bosch GmbH (Bosch) have been tasked with devising potential solutions for addressing tensions between the regional headquarters (RHQ) for the Eastern Europe and Middle East region of Bosch Power Tools' Blue Emerging Markets business unit. The RHQ faces challenges in managing its geographically dispersed subsidiaries, with the subsidiaries complaining about slow decision-making, a lack of efficiency, and a limited understanding of customer needs. Bosch Power Tools must rethink its approach to the Blue Emerging Markets unit and the organizational set-up of the RHQ. Thus, the two managers are meeting with senior managers from across the Eastern Europe-Middle East region and the board of management (Case A) in order to determine the best way to address the issues (Case B).
Two managers in the Power Tools division of German multinational corporation Robert Bosch GmbH (Bosch) have been tasked with devising potential solutions for addressing tensions between the regional headquarters (RHQ) for the Eastern Europe and Middle East region of Bosch Power Tools' Blue Emerging Markets business unit. The RHQ faces challenges in managing its geographically dispersed subsidiaries, with the subsidiaries complaining about slow decision-making, a lack of efficiency, and a limited understanding of customer needs. Bosch Power Tools must rethink its approach to the Blue Emerging Markets unit and the organizational set-up of the RHQ. Thus, the two managers are meeting with senior managers from across the Eastern Europe-Middle East region and the board of management (Case A) in order to determine the best way to address the issues (Case B).
Digital transformation is fundamentally changing the business landscape. It is also affecting the roles of top managers within firms. Our survey of more than 160 senior managers in Europe suggests that digitalization, rather than encouraging more decentralized forms of management, will lead to an expanded role for headquarters and further empowerment of top managers. While acknowledging the benefits of the digital transformation, in this Executive Digest we identify five key challenges for newly empowered top managers and offer solutions for these digitalization traps.