A common shortfall of most large-company management processes is that they often function at a level that is too high. Value is created by the cash flows from individual products or services in specific customer segments, not at the corporate level (although multibusiness enterprises augment that value with mechanisms we discussed in Chapter 12). Therefore, management processes—like performance measurement, compensation, and planning—need to be conducted in a way that helps the company make decisions at an appropriate level of granularity.
