10. Creating effective organizational designs.
Organizational designs that align with competitive strategies can enhance performance. As companies grow and change, their strutures must also evolve to meet new demands. In today's economy, firm boundaries must be flexible and permeable to facilitate smoother interactions with external parties such as customers, suppliers, and alliance partners. New forms of organizing are becoming more common. When evaluating the role of organizational structure on strategy implementation, you might ask:
- has the company implemented organizational structures that are suited to the type of business it is in? If not, how can it alter the design in ways that enhance its competitiveness?
- is the company employing boundaryless organizational designs where appropriate? If so, how are senior managers maintaining control of lower-level employees?
- does the company use outsourcing to achieve the best possible results?
If not, what criteria should it use to decide which functions can be outsourced?