Tesco’s Operating Model: Digital Governance to Leverage Operating Skill and Scale Globally
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2012_0501_Tesco_ReynoldsWeill.pdf
Size
541.4 KB
Format
Adobe PDF
Checksum (MD5)
93c654828c913b9303926a1553915199
Author(s)
Reynolds, Peter
Weill, Peter
Date Issued
May 17, 2012
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Reynolds, Peter and Peter Weill. “Tesco’s Operating Model: Digital Governance to Leverage Operating Skill and Scale Globally.” MIT CISR Research Briefing Volume XII, no. 5 (May 2012). https://dspace.mit.edu/handle/1721.1/174831.
Series/Report no.
MIT CISR Research Briefing, Vol. XII, No. 5
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).
Subjects
Decision rights/governance
Operating Models
Globalization
IT Governance
Terms of Use
CC BY-NC 4.0 (Attribution-NonCommercial 4.0 International)
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