For leaders of multi-business firms, the best decisions aren’t necessarily those that produce the best immediate outcomes.
For senior leaders of single-business companies, making high-level strategic decisions can be a daunting challenge. The difficulties involved in such decisions only increase with the number of businesses under the company umbrella. With multi-business firms, the problem shifts from achieving competitive advantage within a certain industry or market, to achieving corporate advantage—i.e., managing interactions between businesses in a portfolio so that the whole is greater than the sum of the parts.
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