While most of my posts are complete by themselves, you have to refer my knowledge portal for this one, as it is a long page.
As you go through the strategic planning process, shared capabilities and synergies play a significant role to meet the IRR (internal rate of return) hurdle rate set by share-holders. Many a times, the enterprise level strategy blueprint, sums up the business plan submitted by individual SBUs (strategic business units). The key role of strategic planning group is to leverage the opportunities of shared capabilities and synergies for higher effectiveness and expense reduction.
This however, does not mean that we have to maximize synergies. We need to optimize them for maximum shareholder gains.
The subject is dealt in fair degree of detail in Synergies and Shared Capabilities-Overview in my knowledge portal www.bipminstitute.com .
Tags: shared capabilities, synergies
