Operations

How are you balancing local execution with global capabilities?

Being able to execute on a local growth strategy requires developing local capabilities across functions like manufacturing, R&D, and distribution, while maintaining the advantages of scale and consistency in operations around the world. Half of US CEOs wish they could devote more time to developing their overseas operations.

Those successfully balancing their global capabilities with local opportunities are showing a distinct shift in mindset and approach. Consider recent US-China cross-border deals: they combine US experience and expertise with attributes only local Chinese partners can offer, such as relationships to secure government support and distribution networks that penetrate inland regions.

Featured operations insights

A&D Insights: Gaining technological advantage Gaining and protecting market share in the globally competitive Aerospace & defense (A&D) industry hinges on technological differentiation, which is driven by an innovation imperative for the industry. PwC interviewed A&D CEOs and senior executives about new technologies and adjacent markets where they are focusing their efforts to drive lasting growth.
Public-private partnerships: the US perspective The massive — and pressing — need to shore up US infrastructure is undeniable. A dearth of investment in recent years has exacerbated the imperative to act now. In response, some 25 states have enacted legislation to enable private-sector participation in infrastructure projects. These public-private partnerships (PPPs), already commonplace in many parts of the world, combine the best of public-sector governance with the most valuable of private-sector efficiencies. And US investors are beginning to show an increasing appetite for PPPs because infrastructure investments provide relative stability.
10Minutes on business continuity The best disaster survival manual may be obsolete if it doesn’t anticipate major disruptions to the supply chain or at outsourced operations. As a result, business continuity management programs are being designed to continually assess—as well as counter—risks stemming from the interdependencies integral to running a business. Related podcast on Business continuity management
Driving performance effectiveness in the finance and tax functions Working together, tax and finance functions can drive better corporate performance. It begins with an understanding of the interdependencies in data, technology, people and workflow.
Getting beyond novelty: How discipline and failure foster innovation How do you grow and sustain business innovation? What are the keys to innovation?
Strengthening supply chains Supply chain management risks and strategies are explored in this PwC article.

Related operations insights

Banking Relationships: Managing Through Disruption
Banks are re-organizing operations to better serve their customers. Anthony Klick, a Principal in PwC's Banking & Capital Markets practice, discusses seven strategies that can help banks reinvent their business model and manage the transformation of their industry.

When Cash Isn't King: Driving Deposit Value in a World of Excess Liquidity
Rising deposit levels have become a challenge for banks due to an expanded money supply, customer delevering, weak loan growth, near-zero rates, and regulatory developments. Banks in this environment should differentiate and target specific deposit types to support balance sheet and margin objectives. This FS Viewpoint "When Cash Isn't King: driving deposit value in a world of excess liquidity" addresses how differentiation strategies leverage an understanding of banking customer behaviors.

The waves of change in Federal human capital management
Changes in Federal human capital management from social and demographic changes, the global economic crisis, and the current administration impact how these organizations manage their workforce This publication can support human capital professionals in their work with federal agencies about effective human capital management.

Banking Supervision at the Federal Reserve: The Times are a Changing
The executive vice president responsible for Bank Supervision at the Federal Reserve Bank of New York (FRBNY) recently addressed the New York Bankers Association and her address focused on the changes that the FRBNY has made to enhance the supervisory process both in terms of their staffing and supervisory approach.

Agile defense: Re-defining defense organizations as agile enterprises
Familiar combat tactics combined with new threats requires defense organizations to become agile, which will demand strong leadership to successfully implement such strategic changes to defense operations.

Manhattan lodging index: Q2 2011
In the second quarter, Manhattan's average daily rate ("ADR") increased substantially, while occupancy levels declined, still resulting in a healthy increase in revenue per available room ("RevPAR") levels.

The situational CIO: IT problem solver, cost cutter, strategist
During the recession, CIOs and other executives had to focus on tactical issues like efficiencies and cost cutting, rather than on developing new business strategies. Here, PwC explains how that may change and outlines ways the CIO can become more strategic while handling other responsibilities – an idea we call the “situational CIO”.

Government compliance and reporting: Along with financial relief, economic stimulus dollars bring new rules to engineering and construction industry
Economic stimulus dollars bring financial relief and new compliance and regulations to engineering and construction industry.

Seizing opportunity: Linking risk and performance
Compliance remains a core function, but risk management must now keep pace with strategic and operational goals. Discover how making these connections can reveal a fuller view of your company’s strategy and operations for building a more stable future.

Supply chain risk management
Global supply chains are facing major upheavals in the world economy, and manufacturing activity is being particularly hard hit as a result. Add to the mix tight credit and dwindling demand, and bankruptcies increase. Take 10Minutes now for greater insight into supply chains – the pressures they face, how disruptions affect profitability and reputation, and why companies must analyze critical suppliers’ financial and operational metrics.

US infrastructure
There’s a massive need to renew US infrastructure. What forces are converging now to make it happen? Take 10Minutes for a quick overview of the factors and risks – like skills shortages, hidden costs, vulnerable supply chains and more -- and what goes into good management in today’s environment.

Emerging influence of IFRS
How the impact of International Financial Reporting Standards will broaden considerably over the next few years as the convergence of US GAAP and IFRS brings key changes to US financial reporting.

International tax increases
PwC analyzes the proposals to change the taxation of US multinational corporations in President Barack Obama's proposed fiscal year 2010 budget.

Bolstering corporate liquidity
How do companies today face an environment where credit is still scarce and cash is king? While short-term cash management and tax strategies can provide liquidity relief today, business must also develop a more long-term strategy to bolster liquidity. Take 10Minues now for PwC’s take on the issue.

Sustainable cost reduction and cost management
Companies are justifiably anxious to reduce costs, but a lot of cost-cutting measures are short-term only, which wind up damaging corporate infrastructure and culture and cause struggles long after the recession ends. Take 10Minutes now on PwC’s view of how companies’ COOs should simultaneously tackle both cost reduction and cost management for enduring results.

From vulnerable to valuable: how integrity can transform a supply chain
Companies reeling from supply chain breakdowns are discovering that aggressive cost cutting created new risks, like product recalls, and increased uncertainty due to the fluctuating dollar, raw material shortages, energy prices and rising costs in China. Here, PwC discusses how companies can manage their supply chains to balance a competitive cost structure with investment in the future.

Data and identity theft
It’s an interconnected business world. Portability and accessibility of information are crucial components of it This is a great thing -- until the information gets shared with the wrong person. Data and identity theft can be devastating to a company’s brand, reputation and even financial well-being. Take 10Minutes now to learn more about how protection of sensitive information is an overall business issue, not just an IT issue.

Driving change
An environment of constant change demands a new approach to business strategy. While creating efficiencies and cutting costs through process standardization and IT investment was once an effective way to create competitive advantage, companies are now finding themselves bogged down by inflexible systems and processes. Companies must reclaim the right balance of standardization and flexibility and develop a new core competency: agility.