Cross-Function Global Operational Practice

Abstract

In this chapter, we study the concept and taxonomy of cross-functional integration, introduce interlinked performance management, present three generations of balanced scorecards, and discuss challenges to cross-functional practice. First, after introducing global marketing strategy and its links to operations, we discuss integration practice across global operation strategy (GOS) and marketing. Second, we introduce global finance strategy and its links to operations, present an integrative framework between finance and GOS, and address cross-functional practice between global operations strategy and finance. Third, we introduce global taxation strategy and its links to operations, discuss approaches to integrating GOS and taxation, and present a tax aligned global supply chain framework. Fourth, we introduce global human resources and its links to operations, discuss cross-functional practice between GOS and human resources, and introduce an integrative framework of international human resource management. Finally, we address cross-functional integration problems between global operations strategy and information management, discuss global information management and competitive advantages, and present an integrative framework between information management and GOS. In this chapter, we use case examples including Philips Electronics and Balanced Scorecard, Apple’s Operation and Marketing Strategy, Air France-KLM Fuel Hedge Strategy, Tax Restructuring Strategies of GE, P&G Greater China, Walmart Satellite Communication Network, and a case McKinsey & Company to illustrate cross-function global operational practice.