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Tesco’s Operating Model: Digital Governance to Leverage Operating Skill and Scale Globally

Title Author(s) Type Topic(s) Comments Date
Tesco's Operating Model: Digital Governance to Leverage Operating Skill and Scale GloballyReynolds, Peter
Weill, Peter
Research BriefingIT Governance
Globalization
Operating Model
32012-05-17
Abstract: Top-performing firms can grow globally by applying their operating models to achieve five mutually reinforcing goals: economies of scale, business process optimization, local responsiveness, innovation, and coordination of global activities. In this briefing, we describe how Tesco governs its global operating model to achieve these five goals. Tesco provides two key lessons. First, you can have highly standardized global processes while allowing local decision making around country-specific products, distribution, and culture, thus balancing scale and responsiveness. Second, by explicitly including procedures, roles, and measures in your operating model, you can leverage technology, business processes, and best practices globally. This briefing is the fourth in our global governance research (see also P. Weill, C. Soh, and S.K. Sia, "Governance of Global Shared Solutions at Procter & Gamble," Vol. VII, No. 3A, December 2007; C. Soh, P. Weill, and S.K. Sia, "NOL’s Just Enough IT: Lean and Responsive IT in an Asian Multinational," Vol. X, No. 6, June 2010; and P. Reynolds and P. Weill, "Governing for Global Growth at Computershare," Vol. XI, No. 8, August 2011).

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Discussion

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ranjan
May 30, 2012

When we talk of performance of any organisation, people, their skills and organisation culture become very important factor. They remain relevant even for global organisation and to globlization of an enterprise. There are organisations which focuss on these three knowingly which provides them a platform for building strength in those five goals and even cover up the deficiencies, if any.


amario
August 15, 2012

Deall CISR,

I could not see both illustrations on the paper.
Thanks, Mario


Cheryl Miller-Daniels
August 15, 2012

We apologize that the file was not friendly to Apple products! A replacement file has been uploaded; you should now be able to view the graphics.


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