February 21, 2015

Profit Center Management


1968
Left alone, each profit center should be expected to maximize its own value system. It is the central authority's responsibility to optimize the combination of profit centers.
https://www.bcgperspectives.com/content/Classics/corporate_strategy_portfolio_management_operations_profit_centers_and_decentralized_management/

Companies should express profit objectives for both the profit center and its manager in terms of absolute dollars of profit for the planning period, which are based on the projected potential of existing resources to generate cash flow.


Estimating Profit Performance from Similar Profit Centers
Spring 1981
http://link.springer.com/article/10.1007%2FBF02723572#page-1

From profit center to strategy center management ☆
Walter Schertler
Engineering Costs and Production Economics
Volume 12, Issues 1–4, July 1987, Pages 267–273
http://www.sciencedirect.com/science/article/pii/0167188X87900875

Measuring Profit Center Managers
John Dearden
September 1987
https://hbr.org/1987/09/measuring-profit-center-managers



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