CEOs organize people into departments by function and hold them accountable for corporate goals. While such functional specialization boosts efficiency in each department, it could also motivate leaders of each function to gain more resources by taking them from other departments. Unless CEOs create and manage processes to encourage departments to work together, the disadvantages of specialization can overwhelm the advantages. Simply put, leaders make the best use of a company’s talent by first differentiating and then integrating. And to scale their companies, CEOs must achieve corporate ...
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