Better Strategy through Organizational Design
2007 – Managers invest a lot of time and energy in strategic long term planning. But many of these initiatives rapidly got out of date since markets, social roles and legislation change all the time and the technological development proceeds. Many managers miss the chance to generate a sustainable advantage with few financial means and few risks by putting organizational design at the heart of the strategy.
This article presents the golden chances for managers who build their strategies around organisational design and anticipate on changing market situations. Creating a nice design costs a lot of time but pays in more profit, less costs and less risks; it is more profitable than investing in product design and other strategic initiatives.
Putting the organisational structure in the heart of the strategy is a new approach, a step forwards towards the structures typical for the 20th century, where vertical and hierarchical structures were required for performing well. The core values for the new strategy of the 21th century are “one company”, governance structures and knowledge and talent markets and organizational design intended to maximize collaboration among the talented workers who create today’s wealth.
The article Better Strategy through Organizational Design (2007) by L.L. Bryan & C.I. Joyce; in TheMcKinseyQuarterly 2/2007 is attached.