Corporate and business functions—such as finance, human resources, IT, procurement, legal, and facilities management—represent a significant investment for companies and are essential to almost every organization. But in an environment of increased globalization, technology disruption, and cost pressures, they also represent an enormous opportunity. Our experience is that the best companies invest in developing these functions to play an increasingly strategic role, improving competitiveness and value creation.
Transforming corporate and business functions
McKinsey’s approach to corporate and business functions is based on a simple premise: help clients capture the full value of their operations. We provide a cross-functional perspective backed by deep, interdisciplinary expertise and employ a wide range of proven levers, such as lean, capability building, and offshoring and outsourcing. The tools we use help clients to make smart choices on technology and automation. Whether an end-to-end transformation or smaller-scale effort, we work with clients to improve both the efficiency and effectiveness of all business and corporate functions.
Examples of our work include:
- Optimizing functions, such as IT, finance, HR, procurement, legal, and facilities management
- Redefining end-to-end processes, such as procure-to-pay, order-to-cash, and hire-to-retire
- Digitally enabling functions and processes, unlocking value from technology and automation
- Zero-Based Budgeting, rigorously challenging spend levels and instilling a culture of cost-management
- Creating and sustaining shared-service centers, including defining organizational requirements, network and center design, implementation and management, and performance improvement over time
- Evaluating and pursuing captive and third-party outsourcing and offshoring arrangements.
Knowledge and tools
Based on our extensive work with clients, we have developed deep, function-specific databases for cost benchmarking, process efficiency, and location strategy, for example. We also invest heavily in other capabilities, such as:
- Cloud-based platforms, such as OrgLab, which enables rapid visualization of spans and layers and organizational design prototypes, and WAVE, an integrated solution for managing projects from idea to implementation
- Capability-building centers (16 globally), using experiential and other proven learning techniques to demonstrate leading practices, develop skills, and create executive commitment
- A network of external advisors who have led similar transformations and serve as peer coaches.