The report suggests that many corporations struggle to optimize support and back-office functions, often focusing solely on cutting costs. However, Arthur D. Little takes a different approach, looking at the value of the services each function delivers. This approach leads to a more precise assessment of what needs to be kept, changed, or discontinued, resulting in a corporate headquarters that is business-focused, flexible, lean where possible, and strong where necessary. The energy industry is currently undergoing cost-reduction programs, with generation, transportation, distribution, and sales expected to improve. However, the headquarter remains a challenge, with few support functions having been impacted by these programs and little imagination applied to improving its effectiveness. The report suggests that many companies are still far from best in class when it comes to headquarter size and cost, and that learning from manufacturing companies can provide valuable insights.
