Why Corporate Functions Stumble

Our company’s current strategy in competing with online retailers requires additional assistance from a new IT function in our Target.com division. In the Harvard Business Review article “Why Corporate Functions Stumble”, the authors explained the four life-cycle stages of corporate functions. Per your request during our meeting last week, I outlined specific actions we must take to ensure the success of the new IT for the Target.com business division.

Before we implement the three-step approach strategy for establishing the new IT, we must first anticipate the challenges this function will face. The authors highlighted two key problems new corporate functions encounter:

• Unfamiliarity of corporate task: New functions are ambitious and often have unclear goals. While the new functions could help multiple business divisions, it does not add the same benefit for all.

• Lack of expertise in staffing: Internal hires may lack the skills needed while external hires may require better knowledge of the company. A new function adds value to the company. However, without skilled employees, functions could create more work than value.

After understanding the challenges of establishing a new corporate function, I urge we take immediate action when forming the new IT. Our company should limit the new IT function’s mission, size, and degree of engagement through following a three-step approach.

1. Control the function’s goal. The authors suggest that new function leaders should stick to one single initiative to establish the function’s credentials within the company. Enhancing the Target.com website will significantly increase online guest traffic, aligning with our online sales growth strategy. This specific goal will allow the IT function to identify our online shoppers’ needs and make Target a top contender amongst online retailers.

2. Create a small team of highly skilled individuals. Hiring