Making Global Strategies Work

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What most motivates the top managers of multinational subsidiaries to execute the global strategies formulated at headquarters? Is it compensation, monitoring systems, or the magnitude and precision of rewards and punishment? It's none of these, argue the authors. Subsidiary top managers are most concerned that the global strategic decision-making process employs due process. That is, they want an open process that is consistent and fair that and allows for their input. The authors describe their research on this subject and urge companies to pay more attention to how they make strategic decisions.   

W. Chan Kim is associate professor of strategy and international management, INSEAD. Ren«e A. Mauborgne is research associate of management and international business, INSEAD.

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