Article originally published in the Philadelphia Business Journal on June 10, 2019
As I came up through the ranks of PQ Corporation, a company with multiple
business units operating around the world, the issue of the support that business
units receive from corporate staff units was always a subject of discussion. The
saying, “I am from corporate and I am here to help you,” and the occasional
negative reaction from business units is familiar to many.
The most frequent complaints from business units about corporate staff units are: I
am not getting the support I need; the support I am getting is not worth what I am
being charged; and I can buy the same service on the outside cheaper. These
complaints will always be a subject of discussion.
Companies in multiple lines of business are organized by business unit, in which the general
manager of each business unit reports up through a hierarchy to the CEO. These
general managers are held accountable for the bottom-line results of the P&L
statement of their respective businesses. Business units receive services from
corporate staff units, which also report up to the CEO, but through a different
hierarchy.
At smaller companies, there are no business units. Line operating units and staff
units all report up through their respective hierarchies to the CEO, who has
responsibility for the P&L statement of the entire company.
Business units are the internal customers of corporate staff units. Occasionally,
some staff units don’t realize this and don’t give the business units the support
they need. Staff units should be doing everything they can to be responsive to the
needs of the business units they serve and give them what they need to meet their
goals. Business units and staff units must partner and collaborate to achieve
success of the business units and the company as a whole.
A critical issue arises when a business unit is not getting what it needs from a staff
unit to drive its growth, bottom-line goals or strategic initiatives. Business units
can always add the needed resources from outside the company and pay for it
themselves. This brings focus and close alignment to functions that are mission-
critical to the business unit.
If you are the general manager of a business unit, you are held accountable for
your business unit’s bottom line. Because of this P&L responsibility, if you can’t
get what you need from a corporate staff unit to help you meet your bottom-line
goals, you need to tell the leader of that staff unit that you are not getting the
support you need from them. If that doesn’t work, take the issue to your boss and
if necessary, eventually to the CEO of the company.
I would not be bashful in taking this issue up the organization for resolution. Just
do it in a politically sensitive way. Your goals are one element of the CEO’s goals,
and the CEO is evaluated by the board on the results of the entire company. The
CEO will want to help you get what you need to achieve your goals.
Stan Silverman is founder and CEO of Silverman Leadership. He is a speaker,
advisor and nationally syndicated columnist on leadership, entrepreneurship and
corporate governance. Silverman earned a Bachelor of Science degree in
chemical engineering and an MBA degree from Drexel University. He is also an
alumnus of the Advanced Management Program at the Harvard Business School.
He can be reached at Stan@SilvermanLeadership.com. Follow Silverman on
LinkedIn here and on Twitter, @StanSilverman.
