article thumbnail

The First Step to Fixing U.S. Manufacturing

Harvard Business Review

In fact, MGI analysis of financial data shows that large publicly traded US manufacturing firms, most of them multinationals with revenues greater than $500 million, averaged returns on invested capital of 22% from 1997 to 2013. manufacturers do source from domestic suppliers, they tend to regard them purely as a cost center.

article thumbnail

People Are Not Cogs

Harvard Business Review

We manage the measurable, rather than the things that create meaning that fuels creativity, that enables innovative thinking and that helps any company to outpace the market. Gallup , the research firm, recently did a meta-analysis across 199 studies covering 152 organizations, 44 industries, and 26 countries. Maybe yes, maybe no.

Hamel 16
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Develop Your Company’s Cross-Functional Capabilities

Harvard Business Review

On the other hand, they are set up as cost centers and service bureaus, mandated to meet the needs of all their constituents as rapidly as possible under the ceiling of their budget. Frito-Lay’s direct-store delivery capability brings together IT, marketing, logistics and distribution, and financial analysis.

article thumbnail

How Cloud Computing Is Changing Management

Harvard Business Review

History suggests that the main way information technology changes management is through changes in how information is gathered: the large-scale analysis of Operations Research reflected painstaking data collection around a few metrics, which were transferred to punch cards. ” The shift to “cloud native” organizations.