The Parenting Styles theory of Michael Goold, Andrew Campbell
is a framework about the role of the corporate centre in a corporation.
It was dealt with in their book, "Strategies and Styles", and several articles.
They argue that there are many successful approaches to corporate strategy
based upon management styles. Main determinants are the approaches for the
planning influence of the centre and the type of control influence exerted
by the centre on the businesses within the group. From this they identify
3 generic stereotypes which companies tend to follow. There are other styles
but most tend to converge upon one of these three generic styles. Each style
is different in its approach, can offer different advantages to the corporation,
but has different strengths and weaknesses.
Three Generic Parenting Styles
The three generic parenting styles of Goold and Campbell are:
- Financial Control
- Strategic Planning
- Strategic Control
Parenting Style:
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Strategic Philosophy
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Role of Corporate Centre
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Role of SBU's
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Typical # Businesses
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Corporate Methods
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The detail level of the information in
the Corporate Centre
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Financial Control |
Portfolio |
Financial. The centre aims to provide a
better investment performance. |
Manage strategy against tight financial
targets set by centre. Autonomous. |
Many Diverse |
Financial (Risk) and Uniform |
Low |
Strategic Control |
Linkages |
Centre coordinates and reviews strategy.
Sets fairly tight financial & strategic targets. Attempts to create
links between businesses to create competitive advantage. |
Largely develop strategy but coordinated
by Centre. |
Medium |
Limited Corporate Scorecard |
Medium |
Strategic Planning |
Core Competence |
Centre drives strategy. Around important
potential synergies / competences. Strongly coordinating actions and
creating linkages between units. |
They concentrate on implementation and
assist with strategy. |
Low Similar |
Comprehensive Corporate Scorecard |
High |
Which type of influence/style is best to maximize value creation? The answer
is complex but depends and can be determined upon the corporate purpose, history
and culture and upon the reconciliation of multiple paradoxes of parenting
advantage (control versus empowerment, responsiveness versus synergy, portfolio
versus core competence).
Forum discussions about Corporate Control (Parenting Styles).
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The New Deal Parenting Style
Yves L. Doz and and Mikko Kosonen seem to be in favor of the Strategic Planning Parenting Style for fast-changing technology companies in their article 'The New Deal at the Top' in HBR June 2007.
Hav...
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Checklist of Parenting Possibilities Parenting Best Practices, Corporate Strategy, Corporate Governance In their article “Corporate Strategy: The quest for parenting advantage”, Goold and Campbell suggest following ten place...
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What is the Optimal Size for a Corporate Center? Sizing the Corporate Center In the HBR of April 2005 on the added value of corporate headquarters, Michael Goold and David Young have investigated w...
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An important Notice about Parenting Value! Corporate Strategy, Parenting, Corporate Governance Please note that the 4 mentioned influences of a parent over its subsidiaries can all result in both a Creation of value...
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How a Corporate Center can impact the Strategies of its SBU's Corporate Strategy, Business Unit Strategy, Corporate Governance How can a Parent Company impact strategic decisions of its daughter companies? Some typical issues have been identified ...
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What is the Best Location of a Corporate Center? Corporate Geographic Strategy, Corporate Governance A somewhat related issue is in what country the Corporate Center should be based.
In an article called: "The Rise of C...
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How can one Assess the Fit Between a Parent Company and its Businesses? Corporate Strategy, Parenting, Corporate Governance In HBR article named "Corporate strategy: the Quest for Parenting Advantage" (1995) Campbell and Goold extend their Corp...
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Compare with Parenting Styles:
Parenting Advantage |
Prahalad |
Levers of Control |
Growth Phases |
Centralization and Decentralization |
Distinctive Capabilities |
Organizational Configurations
| 3C's |
Mergers
& Acquisitions |
Organization Chart |
Horizontal Integration
| Office
of Strategy Management
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