The Arthur D. Little report highlights the importance of a new governance paradigm and a lean head office set-up in turbulent times. The global economic crisis in 2009 has forced corporations to adopt a more radical approach to steering, and this trend affects whole industries. The energy sector and mobility are examples of industries that have to cope with digital transformation and an increasing demand for regulations. The role and effectiveness of a corporate headquarters are crucial in mastering these changes. The report also discusses the performance of headquarters functions from a leadership and governance perspective. The study conducted by Arthur D. Little found that nearly 70% of respondents perceive their head offices as cost drivers without adequate value adds. Therefore, the report emphasizes the need for a new governance paradigm and a lean head office set-up to add significant value to the organization.
