In globally operating companies, the pressure on corporate headquarters is constantly rising: they are increasingly called upon to justify their existence to the operating entities and demonstrate just how their functions contribute to the company's overall performance. Moreover, corporate headquarters face new challenges arising from the growing complexity of markets and the ever-intensifying competition.

 

If they are to establish themselves as a genuine driver of value in the company as a whole, corporate headquarters need to become more flexible and agile, develop new capabilities and position themselves as more of a partner to the operating business units, according to the key findings of our study "Corporate Headquarters 2014". "Corporate headquarters need to adapt their brief to the new situation in the markets and redefine their role," says Tim Zimmermann, Partner at Roland Berger Strategy Consultants, explaining: "Operating units look for greater support from their corporate centers in volatile times. Value adding capabilities have a particularly important role to play in that context."

 

6 value adding capabilities are what make the difference between good corporate headquarters (CHQ) and very good ones. Constant overperformance in corporate functions can genuinely add value for the company.

 

0.67 is the average deviation (on a four-point scale) between the perceived importance of value adding capabilities and performance in actually delivering them. Untapped potential clearly lies dormant in many corporate headquarters.

 

3.4% of employees work at corporate headquarters on average across all companies (median for corporate centers, excluding shared services).

This figure is a good two percentage points lower than just two years ago.