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Breaking Down Barriers to Excellence
Service providers that are inside companies or departments are all cost centers. Some examples of these service providers are information technology (IT), audit, and accounting. Departments with cost centers have the benefit of seeing how different parts of an organization interact. The incentives and structure that foster these interactions move costs and profitability from one area of the firm to another. These value shifts do not necessarily increase the value proposition. They may in fact diminish the value proposition. As you answer the following questions, consider how this unique perspective can be strategically leveraged to increase the value proposition.
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