Your strategic focus dictates the type and form of organisation required for success. As set out in the chart above – which is from my book, The CEO’s Strategy Handbook – a company that is following a product leadership strategy needs a very different organisation from one pursuing a price leadership strategy.
Many problems for businesses begin when they fail to align their organisation with their strategy. One client of mine, for example, was pursuing a service leadership strategy but had essentially structured its business as a convenience leader by limiting its range, centralising production and becoming increasingly inflexible to local customer demands.
Which type of competitive strategy is your business pursuing? Only by understanding the answer to that question can you build the necessary organisation that will deliver your success.
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© Stuart Cross 2012. All rights reserved.