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The Parenting Styles theory of Michael Goold, Andrew Campbell
is a framework about the role of the corporate centre in a
corporation. It was addressed 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
taken to 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.
The three generic
parenting styles of Goold and Campbell are:
1. Financial Control
2. Strategic Planning
3. Strategic Control
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Parenting
Style: |
Strategic Philosophy |
Role of Corporate Center |
Role of SBU's |
Typical # Businesses |
Corporate VBM Methods |
Detail level information
Corporate Center |
|
Financial
Control |
Portfolio |
Financial. 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 |
Coordinates and reviews strategy. Set
fairly tight financial & strategic targets. Attempts to create
links between businesses to create competitive advantage.
|
Largely develop strategy but
coordinated by Centre. |
Moderate |
Limited Corporate Scorecard |
Medium |
|
Strategic
Planning |
Core Competence |
Drives strategy. Around
important potential synergies / competences. Strongly
coordinating actions and creating linkages between units. |
Concentrate on
implementation. Assist in 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).
Compare with Parenting Styles: Parenting
Advantage | Prahalad
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Levers of Control |
Greiner
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Kay |
Mintzberg
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3C's |
M&A
More management models
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