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Structure follows Strategy is a strategic management aspect which indicates a narrative that the organizational structure of a company should be well and truly designed in a way to support its strategy in order to reap rewards in the foreseeable future. In simple terms, the role of the structure is to deliver the strategy.
Strategic grouping. Goal: Determine what basic grouping of work will create the capabilities necessary to deliver the decided strategy. Milestone: Decided on a structure change which supports the strategy. Integration. Goal: The boundaries created by grouping work must be breached to deliver results for customers, partners and shareholders.
The strategic grid model is a contingency approach that can be used to determine the strategic relevance of IT to an organization. The model was proposed by F. Warren McFarlan and James L. McKenney in 1983, and takes the impact of the information technology on the strategy in future planning as the horizontal axis, and the current impact of the information technology on corporate strategy as ...
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. [1] Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest.
He says it concisely, "Structure follows Strategy." Chandler wrote that: "Strategy is the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals." [22] Igor Ansoff built on Chandler's work by adding concepts and inventing a vocabulary.
For strategic planning to work, it needs to include some formality (i.e., including an analysis of the internal and external environment and the stipulation of strategies, goals and plans based on these analyses), comprehensiveness (i.e., producing many strategic options before selecting the course to follow) and careful stakeholder management ...
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Strategic alignment is a process that ensures an organization's structure, use of resources (and culture) support its strategy. "In its simplest form, organizational strategic alignment is lining up a business' strategy with its culture."