Case Study: Peter Barge

In regard to the case study, Peter Barge is the Chief Executive Officer of Jones Lang LaSalle, a newly formed Corporate Solutions Group. He makes a choice of restructuring one of the Company’s divisions so as to provide its customers with integrated solutions. He has created a function of an account management to serve the role of coordinating activities of three unites that are product-based and operating independently. Hence, the choice of integrating the enterprise is the key choice made by Peter Barge (Corporate Solutions at Jones Lang LaSalle, 2001).

Table of Contents

Among the most significant and enduring tensions in virtually all small enterprises is between empowerment and subunit autonomy. Peter Barge’s design choice balances the tension between empowerment and subunit autonomy. Additionally, it balances the tension between cohesion and organizational integration. The choice entails implementation of four types of horizontal integration needed for attaining cohesion without necessarily using hierarchy (Ghoshal and Gratton, 2002).

I support the approach taken by Peter Barge since it has several beneficial outcomes. One of the key merits is that the approach ensures low resistance to future change. The approach eliminates bureaucratic central controls, leading to empowering of small subunits. Consequently, this results to improved quality of responsiveness to market demands as well as speed. Increases creativity and innovation is the other benefit associated with the approach of integrating the enterprise. Through the approach companies can lower their corporate level overhead as well as making processes of internal governance more transparent and disciplined (Ghoshal, 2002).

References

Corporate Solutions at Jones Lang LaSalle (2001). Ranjay Gulati; Lucia Marshall

Ghoshal, S., & Gratton, L. (2002). Integrating the Enterprise. MIT Management Review, 44(1), 31-38

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