Christoph Lechner

Strategic initiatives are frequently touted as a mechanism to overcome structural inertial and create flexibility in multi-business firms. Yet, empirical research suggests that these initiatives frequently fail to reach their goals. In this paper we identify limits to the autonomy of strategic initiatives and argue that the coordination of corporate initiatives through corporate initiative programs (outside of the operating structure) is able to provide benefits beyond the reach of alternative approaches. We further argue that coordination of initiatives along several succinct dimensions improve their impact in creating cross-business synergies. Our arguments contribute to literatures on horizontal coordination, strategic initiatives, heterogeneous goals and multi-business firms more generally.