Strategy Formation and Organization Design

Strategy Formation



Strategy is the set of actions in which members of an organization collectively engage—it is what an organization does.  This sum of an organization’s activities is the primary determinant of what it is able to achieve.  Actions lead to results.  Strategy is what is enacted, not what is thought about.

If an organization’s collective actions are appropriate, it will achieve its intended outcomes.  If its actions are not appropriate, it will either fail to achieve at all, or will achieve something other than what was intended.  

Strategy Formation starts with customer requirements and works “backwards” through the organization, specifying critical results, reliable methods, and necessary resources.  The goal is to create the “chain(s)” of activities that are most likely to result in customer satisfaction—thus, organizational longevity. 

The Strategy Formation process will enable you to develop:

·        A clear sense of priorities

·        A common sense of direction

·        A clear definition of business unit and collective responsibilities

·        Profitable investment of business unit and collective resources

·        Alignment of activities with strategic direction and goals

·        Synergies through coordinated, goal–directed action

·        Coordinated management of changes in corporate structure, staffing patterns, information systems, and use(s) of technology.


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Last modified: October 19, 2000