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A multiunit enterprise is a geographically dispersed organization built from standard units (stores, restaurants, or branches) that are aggregated into larger geographic groupings (districts, regions, and divisions). Although this organizational structure has become the norm in several industries, it has received little attention from academics and consultants. Garvin and Levesque set out to fill that gap in management thinking with their research. The authors closely studied the office supply company Staples for two years and then collected data from 12 other multiunit enterprises. In this article, they discuss the unique problems that such corporations face, describe how managers tackle those challenges, and offer lessons that will help all types of organizations execute strategy. In a multiunit enterprise, four tiers of management constitute the field organization: store, district, regional, and divisional heads. All these managers are responsible for meeting targets set by corporate headquarters and implementing strategy. To do so, they adhere to five principles of organizational design. First, the field organization's different tiers have overlapping responsibilities; together they create a multilayered net to catch any problems that arise. Second, managers at all levels serve as integrators, coordinating diverse activities and optimizing the efforts of the whole organization rather than its parts. Third, higher-level managers filter data from headquarters to frontline managers, who otherwise might feel overwhelmed by a constant stream of initiatives. Fourth, regional and divisional heads in particular act as translators, defining in concrete terms how the field organization can roll out initiatives. Finally, all managers share responsibility for talent development.

To be competitive, companies must grow innovative new businesses. Corporate entrepreneurship, however, isn't easy. New ventures face innumerable barriers and seldom mesh smoothly with well-established systems, processes, and cultures. Nonetheless, success requires a balance of old and new organizational traits--and unless companies keep those opposing forces in equilibrium, their new businesses will flounder. The authors describe the challenges companies face when they pursue new businesses, as well as the usual problematic responses to those challenges. Such companies, they say, must perform three balancing acts: 1) Develop strategy by trial and error, which includes narrowing potential choices, learning from small samples, using prototypes to test business models, tracking progress through nonfinancial measures, and knowing how and when to pull the plug on a new venture; 2) Find the best combination of old and new operational processes by staffing new ventures with "mature turks," changing veterans' thinking, knowing which capabilities to develop and which to acquire, and having old and new businesses share responsibility for operating decisions; 3. Strike the right balance of integration and autonomy by assigning both corporate and operating sponsors to new ventures, establishing criteria for handoffs to existing divisions, and using creative organizational structures. The authors provide a detailed look at IBM's Emerging Business Opportunity system, which manages all these balancing acts simultaneously.

One of six cases that describe the roles and responsibilities of managers at each of the hierarchical levels of management within the U.S. Stores business unit of Staples, the world's largest office supply company. Together, the cases form a complete integrated package. Explores five distinct jobs--store manager, district manager, regional vice-president, division senior vice-president, and president of the U.S. Stories business units--and, for each level, describes the key management tasks, planning, decision-making, and leadership processes and critical choices that lead to superior execution and operational performance. Provides background information on Staples' organization and strategy.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Describes the process, components, and detailed action steps involved in using scenario planning in any organization. Provides detailed examples that use the process.

In March 2005, CEO Michael Eskew has asked the Corporate Strategy Group to recommend changes to the strategic process to ensure it allows United Parcel Service (UPS) to continue to transform itself over the next several years. Describes the evolution of UPS's strategic process, with special attention on the company's use of scenario planning techniques, as well as other critical elements of the process: the development of the company charter, strategic planning, strategic decision making, and strategy implementation. Also discusses the roles of the various players in the process, focusing especially on the CEO and corporate strategy staff.

This is an MIT Sloan Management Review article. Too many managers are burned out on strategic change. They have lived through the scenario in which the CEO announces a bold initiative designed to lift performance dramatically. The initiative calls for sweeping changes in the company's processes, systems, and culture--and large resource investments. Despite some short-term gains, it's common for the organization to slip back into old ways of doing things. Argues for a system that enables change initiatives to stick. Uses a detailed case study (a disguised large clothing retailer) to demonstrate what it takes to produce sustainable changes in processes, behavior, or performance. Uncovers four critical processes--chartering, learning, mobilizing, and realigning--that pave the way for successful institutionalization of a strategic change initiative. The elements rely much more on an understanding of the mix of task-related, emotional, and behavioral factors than is fashionable in today's metrics-driven environment. Also highlights the study's divergence from conventional wisdom about programmatic change, arguing that managers need to set in motion a series of processes right at the start if widespread changes are to stick.

Describes the evolution of General Motors' strategy, organizational structure, and management processes from its founding to the present day. Focuses on the role of GM's management committee--the senior-decision-making body at the company, now called the Automotive Strategy Board (ASB)--and how it operates under Rick Wagoner, its current CEO. In October 2004, Wagoner and the ASB are wrestling with recent changes in GM's planning and budgeting processes and how they will affect the balance between global and local needs.

Supplements the (A) case.

Supplements the (A) case.

Spreadsheet supplement to case 304-075.

By June 2003, IBM had made significant progress in changing the way it managed new, emerging businesses. Describes the development of a separate management program at IBM designed to identify, fund, and shepherd new businesses through growth. Traces the history of the program, its evolution, and the current challenges senior management faces in scaling up the program.