Internal Strategy: Organizational Structure
Modernist architects coined the maxim that form follows function. The emphasis on essential supporting structures applies equally to designing an effective MSDR. The various parts need to elegantly support, and facilitate, the underlying organizational structure and institutional way of thinking. There’s nothing prefab about this. Structures directly affect the contextual nature of delivering results. System designers need to consider the nature of the management team, the reporting relationships, the motivation of the managers, the relevance of geography, the nature of the products, the segmentation of markets, and the flow of feedback information. The key to structure is to align the organization’s parts to achieve the corporate strategy. The MSDR must serve as a flexible framework for strategy implementation.
The organization’s structure has everything to do with the execution—and ultimate success—of the strategy. Whether small startups or large...