Organizational Structure and Strategy

“Strategy follows structure, Structure shapes strategy”

An organizational structure is a system which defines the scope of individual or position’s authority and accountability within an organization. An organization will be in the best position to implement its business plans when the design reflects its strategy, but not the internal politics.

Strategy-supported structure defines how all the organization elements such as people, policies, procedures, culture, and technology work together. The organizational design helps in the hierarchical arrangement of lines of authority, communications, and duties within an organization.

Structure and Strategy

A structure depends on the organization’s vision and strategy enabling its growth. In a centralized structure, the top layer of management has most of the decision-making power and has tight control over departments and divisions. In a decentralized structure, the decision-making power is distributed, and the departments and divisions may have different degrees of independence. Thus, an organization should decide its structure after perfect due diligence.

Role of Organizational Design

Organizational design regulates how the roles and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of the organization. Organizational structure can help in the following ways:

• Direct employees by giving clear guidelines to better understand their role, rights, and responsibilities
• Divide the organization and bind employees into teams, functions, and departments
• Find redundant roles in the organization
• Identify overlapping roles
• Help in workforce planning

Adapting to New Strategy

If an organization intends to change its strategy, it must be ready to change its structure, without which the structure pulls the organization back to its old strategy. Our highly diversified experience in creating organizational structure, and defining strategies for clients can help you create organic growth plans, inorganic performance, and reduce costs.

Client Success Story

Our key focus while working with clients is on linking the organization to strategy, driving accountability, and the ability to be agile in nature. A manufacturing company seeking high geographical business expansions and major revenue growth, a new organizational design supported by strategy transformed the sales and operations model, eliminating non-value-added activities and overlapping roles in the organization. The company expanded its operations to 5 new geographical locations with a 15% increase in revenue.