Internal v. external sourcing

Having decided on its strategic objectives and on which capabilities it is prepared to contemplate externalizing, the board has a wide range of different approaches and structures to choose from, each providing a different balance of shareholder value and risk – as illustrated in the ‘alliance framework’ in Figure 1.1. While considering these, the board also needs to go through a further process: understanding what will be involved in making the required cultural change at the relevant level – be it within a business unit or across the entire company. In the case of a business unit, it might seem that if the unit were capable of making the required change itself, then it would already have done so. But if time or ...

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