The article discusses the challenges faced by financial services companies in optimizing their support and back-office functions. While these companies have been successful in improving operational efficiency, they struggle when it comes to the back office. The traditional approach of simply cutting costs and setting crude targets for these functions has not been effective and has resulted in frustration for everyone involved. Arthur D. Little proposes a different approach that looks at the value of the services provided by the corporate headquarters, rather than just the cost. This approach offers a more precise assessment of what needs to be kept, what needs to be done differently, and what needs to be discontinued. The result is a corporate headquarters that is business-focused, flexible, lean where possible, and strong where necessary, providing true support for the business. The article concludes that financial services companies are still far from being the best in class when it comes to headquarter size and cost.
