Organization Strategy

We are in a period of substantial change as organizations grapple with:

• How to capture both enterprise-wide value from technology investments and the benefits of generative AI 
• How to stay ahead on growth, innovation, and profitability, while withstanding disruptive external pressures 
• How to better attract, retain, develop, and leverage talent 

Organizations are finding that classic operating model interventions are insufficient when it comes to successfully addressing these challenges. Rather than attempting once again to optimize the matrix, companies are seeking a new organization strategy: they are turning to platforms. Platforms are shared, enterprise-wide capabilities that multiple businesses build on to deliver customer value quickly and efficiently. All organizations use platforms, but with our platform-operating-model approach BCG clients go far beyond infrastructure and corporate functions—eliminating duplication, substandard capabilities, silos, handoffs, and burdensome governance.

Organizations that aspire to lead their industry must deliver an end-to-end digital transformation to unlock new sources of economic value. But doing so takes more than technology alone. Top performers will combine new technologies with human capabilities to build for the future.

Even though many of the elements of future-built organizations are well known—  artificial intelligence, digital talent, and platform-based software and services, for example—the organization management formula for melding human and technological capabilities is neither immediately evident nor easy to implement. We help companies build organization models that unleash the power of human creativity, deliver machine- and AI-augmented operations, and drive continuous innovation. This, in turn, helps clients enhance business value, lower costs, and improve customer satisfaction.

Many of today’s business organizations are vexed by internal complicatedness—a proliferation of cumbersome structures, processes, and systems. BCG’s Smart Simplicity approach helps companies manage the ever-increasing complexity that stifles an organization’s performance and growth. Our delayering and zero-based budgeting approaches also support large-scale transformation and organization change by freeing up resources to drive growth and innovation, allowing organizations to fundamentally change what they do and how they work. And we help companies achieve and embed agile transformation throughout their entire organization.

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The challenge of PMI—bringing together two structures, cultures, management groups, and sets of processes—is profoundly complex. In the past five years, we’ve helped major multinational companies complete more than 550 mergers and acquisitions—and our framework for a successful PMI has helped BCG clients boost the value they capture from their M&A deals by 9%.

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In a dynamic business landscape, shared services and support functions can give companies a critical advantage by enabling business and strategic functions to perform more effectively. We help large, complex organizations create Global Business Services organizations to deliver efficiencies that enable scale & margin, serve as a platform that enables agility throughout the org, and build capabilities that drive strategic growth.

To enable this shift, organizations must build dynamic platforms, position small and nimble agile teams on the frontlines, and embrace scalable processes and modular technology and data architecture. Our holistic approach for designing Global Business Services has helped unlock significant benefits for our clients, including cost reductions of 20% to 40% and performance boosts of 5x their industry peers.

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