CHAPTER 12

IMPLEMENTING STRATEGY THROUGH ORGANIZATIONAL DESIGN:

1. Organizational Structure
2. Strategic Control System
3. Organizational Culture

ORGANIZATIONAL STRUCTURE

Building Blocks of Organizational Structure:

1. Grouping Tasks, Functions and Divisions
2. Allocating Authority and Responsibility
a. Tall and Flat Organizations
b. The Minimum Chain of Command
c. Centralization or Decentralization?
3. Integration and Integrating Mechanisms
a. Direct Contact
b. Liaison Roles
c. Teams

STRATEGIC CONTROL SYSTEMS

Strategic Control and Four Basic Building Blocks of Competitive Advantage:

1. Control and Efficiency
2. Control and Quality
3. Control and Innovation
4. Control and Responsiveness to Customers

Steps in Designing an Effective Strategic Control System:

1. Establish Standards and Targets
2. Create Measuring and Monitoring Systems
3. Compare Actual Performance against the Established Targets
4. Evaluate Result and Take Action if Necessary

Levels of Strategic Control:

1. Board of Directors
2. Corporate-Level Managers
3. Divisional-Level Managers
4. Functional-Level Managers
5. First-Level Managers
 Types of Strategic Control System:
1. Personal Control
2. Output Control
3. Behavior Control

Using Information Technology

Strategic Reward Systems

ORGANIZATIONAL CULTURE

Culture and Strategic Leadership

Traits of Strong and Adaptive Corporate Culture

BUILDING DISTINCTIVE COMPETENCIES AT THE FUNCTIONAL LEVEL

Functional Structure: Grouping by Function

The Role of Strategic Control

Developing Culture at the Functional Level

1. Manufacturing
2. R&D
3. Sales

Functional Structure and Bureaucratic Costs

1. Communication Problems
2. Measurement Problems
3. Customer Problems
4. Location Problems
5. Strategic Problems

The Outsourcing Option

IMPLEMENTING STRATEGY IN A SINGLE INDUSTRY

Implementing Cost Leadership

Implementing Differentiation

Product Structure: Implementing A Wide Product Line

Market Structure: Increasing Responsiveness to Customer Groups

Geographic Structure: Expanding Nationally

Matrix Structure

Product-Team Structure

Focusing on A Narrow Product Line

RESTRUCTURING AND REENGINEERING