In the holding structure, three main management models can be distinguished:
Operating model
One of the main models of holding management, as its name suggests, involves the transfer of certain functions of operational management and control to subsidiaries at the parent company level. This scheme is most often used in single-industry structures, where most of the subsidiaries operate in the same industry and under approximately equal market conditions.
The operating model of holding teacher data package management is characterized by the fact that the management company makes decisions not only on financial and investment activities (as is often the case in other schemes), but also makes decisions on current work. This includes setting prices and tariffs, determining standard terms of contracts for the supply of goods or provision of services, and (partially) managing procurement processes and other aspects.
Centralization of operational functions can be carried out either by directly transferring responsibility to the management company (for example, centralization of marketing functions, stocks, etc.), or indirectly through the use of internal regulations, standards and limits established by the holding, etc.
But the use of an operating model may lead to a decrease in the independence of subsidiaries and their managers. The latter may refer to decisions made by the management company or established regulations in the event of problems or shortcomings in their work.
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Strategic Management Model
Provides that the parent company has key functions, such as developing a development strategy, defining long-term tasks for subsidiaries and monitoring their solution. Important functions of holding management, which significantly affect the achievement of the set strategic goals, are also centralized. Particular attention is paid to financial and investment policy.
The main difference of this model is that it does not interfere with the operational activities of subsidiaries. But their results are monitored in great detail, using budget, investment and financial analysis mechanisms.
Model of strategic management of holding
Within the framework of the strategic management model of the holding, the following main methods are used to coordinate decisions with the parent company.
Development of a unified strategy for the group's development and approval of strategic plans for subsidiaries.
Approval of annual budgets of subordinate structures.
A centralized process for reviewing, approving and including investment projects of subsidiaries in the budget.
Coordination of the borrowing policy of subordinate structures, which is represented by various forms (from setting limits on attracting loans and credits for individual companies to centralizing the borrowing policy at the management company level).
Centralized management of temporarily free cash flows of subsidiaries (their financial flows).
Approval of internal corporate documents (standards, regulations, etc.) that are mandatory for all holding structures.
Monitoring the performance of subsidiaries and their management using established financial and operational indicators for evaluation.