True Profit! by Hermann Simon

Author:Hermann Simon
Language: eng
Format: epub
ISBN: 9783030767020
Publisher: Springer International Publishing

Goal Conflicts

In Chap. 3 we discussed the problem of goal conflicts in general terms. The consultants at Simon-Kucher & Partners regularly encounter goal conflicts in their projects. These can arise between many different parties in the client organization. The most common conflicts occur between finance and sales, but in other cases, marketing and sales are not aligned either. The goals of regional offices often diverge from the goals the headquarters pursues.

Figure 5.5 shows a real-life example of such conflicts. The goal priorities of the various managers are not aligned. While the CEO and the head of sales put the highest priority on profit orientation, the CFO’s primary goal is revenue. The head of marketing prioritized market share.

Fig. 5.5Conflicting or contradictory goals among senior managers. Priorities ranked from high (1) to low (3)

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