1. Strategy in Action 12: Organising for Success

2. Learning Outcomes (1)
Identify key challenges in organising for success, including ensuring control, managing knowledge, coping with change and responding to internationalisation
Analyse structural types of organisations in terms of strengths and weaknesses
Recognise how important organisational processes need to be designed to fit their circumstances

3. Learning Outcomes (2)
Appreciate how internal and external relationships can integrate knowledge and resources within and between organisations
Recognise how the three stands of structure, processes and relationships should reinforce each other in organisational configurations and the managerial dilemmas involved

4. What is Configuration?
An organisation’s configuration consists of the structures, processes and relationships through which the organisation operates.

5. Exhibit 12.1 Organisational Configurations

6. Key Challenges for Organisations
The speed of change and the increased levels of uncertainty
The importance of knowledge creation and knowledge sharing
The rise of internationalisation

7. Structural Types Functional Multidivisional Matrix Transnational
Project-based

8. Exhibit 12.2 A Functional Structure

9. Functional Structures
Advantages
CEO in touch with all operations
Reduces/simplifies control mechanisms
Clear definition of responsibilities
Specialists at senior and middle management
Disadvantages
Overburdened with routine issues
Neglect strategic issues
Difficulty coping with diversity
Coordination between functions
Failure to adapt

10. Exhibit 12.3 A Multidivisional Structure

11. Multidivisional Structures
Advantages
Flexible
Control by performance
Ownership of strategy
Specialisation of competences
Training in strategic view
Disadvantages
Duplication of central and divisional functions
Fragmentation and non-cooperation
Danger of loss of central control

12. Exhibit 12.4 A Matrix Structure

13. Matrix Structures Advantages Integrated knowledge Flexible
Allows for dual dimensions
Disadvantages
Length of time required for decision making
Unclear job and task responsibilities
Unclear cost and profit responsibilities
High degrees of conflict

14. Exhibit 12.5 Multinational Structures

15. What is a Project-Based Structure?
A project-based structure is one where teams are created, undertake the work, and then are dissolved.

16. Exhibit 12.6 Comparison of Structures

17. Design Tests for Checking Structural Solutions
Market-Advantage
Parenting Advantage
People
Feasibility
Specialised Cultures
Difficult Links
Redundant Hierarchy
Accountability
Flexibility

18. Exhibit 12.7 Types of Control Processes

19. What is a Balanced Scorecard?
Balanced scorecards combine both qualitative and quantitative measures, acknowledge the expectations of different stakeholders and relate an assessment of performance to choice of strategy.

20. Exhibit 12.8 An Example of the Balanced Scorecard

21. What is Devolution?
Devolution concerns the extent to which the centre of an organisation delegates decision making to units and managers lower down in the hierarchy.

22. Exhibit 12.9 Relating Internally and Externally

23. Strategy Styles for Division of Responsibility
Strategic planning style
Financial control style
Strategic control style

24. Exhibit 12.10 Strategic Planning Style

25. Exhibit 12.11 Financial Control

26. Exhibit 12.12 Strategic Control

27. Methods of Relating Externally
Outsourcing
Strategic Alliances
Networks
Virtual organisations
Use Amazon. Begin at 3:40 and stop at 4:13. This is section on infrastructure and physical versus virtual space.

28. Exhibit 12.14 Dilemmas in Organising for Success

29. Chapter Summary (1)
Organising for success is about an organisation’s configuration, built on three related strands: structures, processes, and relationships
Successful organising means responding to the key challenges facing the organisation: control, change, knowledge and internationalisation
There are many structural types, each with its own strengths and weaknesses

30. Chapter Summary (2)
There are a range of different organisational processes, direct or indirect and focused on input or outputs, to facilitate strategy
Relationships are important for success
Separate organisational strands should come together to form a coherent reinforcing cycle

31. Key Debate: Does Structure Follow Strategy?
Hall and Saias suggest that organisational structures can influence the kinds of strategies that management teams will pursue.
What kinds of organisations might be particularly susceptible to structural constraints on their strategies?

32. Case Example: Hurricane Katrina

33. Case Example: Hurricane Katrina
What was the strategy of the Department of Homeland Security in the period immediately before Hurricane Katrina?
In the light of this strategy, what if any changes should be made to the Department’s organisational structure?
Who was responsible for the organisational failures surrounding the response to Katrina?