Compelling case for organizational maturation. Your point about corporate development's natural ownership of build-buy-partner decisions is sharp,but one counterargument: the patient capital argument assumes corporate development already has multi-year mandate protection, which isn't universal even in mature organizations. In my experiance, the risk isn't just budget vulnerability during annual cycles, its that corp dev teams are often evaluated on short-term M&A productivity metrics themselves, which creats similar pressure to show quick wins even if the function theoretically operates on longer horizons.
I love this. You are actually teeing up my next article really well. There is a pathway to shift a studio operation from a cost center to a profit center and do it on a relatively short timeframe. Still years, but much less than CVC return horizons. And the presence of CVC within the corporate development sphere also helps provide that buffer on multi-year strategies and budget challenges.
Compelling case for organizational maturation. Your point about corporate development's natural ownership of build-buy-partner decisions is sharp,but one counterargument: the patient capital argument assumes corporate development already has multi-year mandate protection, which isn't universal even in mature organizations. In my experiance, the risk isn't just budget vulnerability during annual cycles, its that corp dev teams are often evaluated on short-term M&A productivity metrics themselves, which creats similar pressure to show quick wins even if the function theoretically operates on longer horizons.
I love this. You are actually teeing up my next article really well. There is a pathway to shift a studio operation from a cost center to a profit center and do it on a relatively short timeframe. Still years, but much less than CVC return horizons. And the presence of CVC within the corporate development sphere also helps provide that buffer on multi-year strategies and budget challenges.