Harvard Business Review

OCTOBER 12, 2011

But surveys show that more than 25% of firms still think of IT as a cost center, 53% of CIOs' time is focused on cost control, and 54% of companies outsource their IT services. It's easy to fall into the Kodak trap, especially in austere times when there's almost overwhelming pressure to cut costs.

CIO 10

CIO Outsourcing Cost Center Film 10

Harvard Business Review

JANUARY 4, 2018

The ABU was set up as a centralized profit center with ambitious targets and with direct reporting to the chief operations officer; most often, similar units are organized as cost centers with no specific targets. This setup fosters focus on high-yield projects, actionable analytics, and speed of execution. Support from the top.

Company 8

Company Chief Operating Officer Incentives Project 8

Harvard Business Review

OCTOBER 1, 2013

The business complains that IT doesn’t understand the business, consistently overpromises and under-delivers, and slows innovation. Today, this topic simply doesn’t come up often enough, leading to a one-size-fits-all approach to managing IT, often as a cost center.

Information Technology 8

Information Technology Technology Cost Center Constraint 8

Harvard Business Review

JUNE 2, 2011

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. Nilofer Merchant is a corporate advisor and speaker on innovation methods. Yet most organizations still operate much as they did in the industrial age.

Hamel 16

Hamel Customer Loyalty Creativity Cost Center 16

Harvard Business Review

FEBRUARY 8, 2018

“It’s already changing organizations, by moving IT from a cost center to something with a place at the table in a lot of different meetings,” said Chris Jackson, head of cloud platforms at Pearson, a global learning company. “It forces our internal teams to think about innovating faster,” said Mr. Jackson.

Management 13

Management Software BPM Technology 13

Harvard Business Review

FEBRUARY 2, 2016

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. When all cross-functional teams are temporary, an organization has little incentive to overcome these hurdles.

Development 8

Development Supply Chain Incentives Outsourcing 8

Harvard Business Review

FEBRUARY 9, 2011

We call these people Cost Center Consumers, and they come in two flavors. Divas: These are high maintenance consumers who drive costs up after purchase. They tie up your call centers, incur costly returns, and generate other costs that occur below the gross margin line, which is harder to see.

P&L 15

P&L Supply Chain Retail Price 15

Harvard Business Review

FEBRUARY 22, 2012

Typically an in-house cost center, service is usually viewed as a necessary evil and constantly targeted for "efficiency." Over time, notable service firms built outsourcing capacity in India, Malaysia, Singapore and elsewhere to allow any firm to have a global service workforce at low cost. Model #2 is an example of that.

Participative 15

Participative Decentralization Globalization Cost Center 15

HR Digest

JANUARY 5, 2022

And if not, what are the ways and means of creating a culture where employees are united by curiosity, knowledge, innovation and a shared sense of purpose. The HR Digest: What is Bosch’s secret sauce to being recognized as one of the “Best Workplaces for Innovators?”. Bosch takes great pride in its Business Resource Groups (BRGs).

Human Resources 52

Human Resources Education Resources Innovation 52

Harvard Business Review

DECEMBER 18, 2012

This isn't just a wonky exercise: As PepsiCo exec Al Halvorsen told me, "the real reason you do an LCA is improve the business, to put more efficient processes in place, and innovate in the supply chain.". Sustainability innovation opens up: Unilever, Heineken, and EMC ask the world for help. Five Questions For 2013.

Supply Chain 10

Supply Chain Constraint P&L Energy 10

Harvard Business Review

OCTOBER 4, 2012

As founder of the Center for Hispanic Leadership, I can attest to the fact that the U.S. Think profit center, not cost center. According to the Center for Talent Innovation , only 5% of mid-level Hispanic managers have sponsors, as Hispanics have not been as effective at earning a seat at the table with senior executives.

Policies 15

Policies Short-term Education Diversity 15

Harvard Business Review

OCTOBER 4, 2012

As founder of the Center for Hispanic Leadership, I can attest to the fact that the U.S. Think profit center, not cost center. According to the Center for Talent Innovation , only 5% of mid-level Hispanic managers have sponsors, as Hispanics have not been as effective at earning a seat at the table with senior executives.

Policies 8

Policies Short-term Education Diversity 8