UNIVERSITY OF IMMACULATE CONCEPTION

Jacinto St., Davao City

MBA 215 CSR

ADRIAN L. BALASO ROLANDO G. BORJA, DBM

Student Professor

CASE # 9/ TITLE
The Decision-Driven Organization

BACKGROUND OF THE CASE

Many CEOs assume that organizational structure—the boxes and lines on a
company’s org chart—is a key determinant of financial performance. Like generals,
they see their job as putting the right collection of troops in the right places. If the
battle is about innovation, for example, then the CEO’s duty is to create the best
possible structure for channeling resources towards innovation. This belief helps
explain why reorganizations are so popular with chief executives. In fact, nearly half
of all CEOs launch a reorg during their first two years on the job. Some preside over
repeated restructurings. The immediate motives vary. Some are about cutting costs;
others are about promoting growth. Some are about shaking up a culture; others are
about shifting strategic focus. Whatever the specifics, though, reorgs almost always
involve making major structural changes in pursuit of better performance.

STATEMENT OF THE PROBLEM

The problem of the case is the effectiveness of reorganization of the business
since most reorganizations fall flat. Most had no effect, and most actually destroyed
value.

SWOT ANALYSIS
STRENGTHS
 Reorganizations almost always 
involve making major structural
changes in pursuit of better
performance.
 Improving the organization’s ability
to make and execute key decisions
better and faster than competitors
produces better performance. It may 
be that the strategic priority for your
company is to become more
innovative.
 The reorganization challenge is to
structure the company so that its
leaders can make decisions that
WEAKNESSES
A recent Bain & Company study of
57 reorgs between 2000 and 2006
found that fewer than one-third
produced any meaningful
improvement in performance. Most
had no effect, and some destroyed
value.
Failure is rooted in a profound
misunderstanding about the link
between structure and performance.
 Performance is not determined
solely by the nature, scale, and
disposition of resources, important
though they may be.
 produce more and better innovation
over time.
OPPORTUNITIES THREATS
 If you can align your organization’s  A slow pace of decision making.
structure with its decisions, then the  Failure in restructuring can
structure will work better, and your exacerbate problems rather than
company’s performance will help solve them.
improve.
 Good decision-making help improve
the organization.

ALTERNATIVE ACTION
1. Develop and deploy talented people in reorganization.
2. Gather survey data that could help assess progress in building and sustaining
decision capabilities.

PROS & CONS TO ALTERNATIVE ACTION

1. Develop and deploy talented people in reorganization.
Pros Cons
 High-performance organizations  This will take cost for the
routinely find people who think and organization.
act like owners— people with high  It takes a lot of time to develop
aspirations who make decisions and people in the organizations.
take prompt action.
 Talented people in the organization
boost organizational performance.

2. Gather survey data that could help assess progress in building and sustaining
decision capabilities.
Pros Cons
 Through data gathering, it helps the  Making the wrong questions can
organization in terms of the accuracy lead to inaccurate data.
in decision making.  Making the wrong questions can
 It can show latest trends in the lead to inaccurate data.
market.
 It gathers large and significant data.

RECOMMENDATION/S
I highly recommend developing and deploying talented people reorganization.
High-performance organizations routinely find people who think and act like owners
— people with high aspirations who make decisions and take prompt action. That
requires companies to consider what types of people they need to succeed,
selecting for skill as well as will— for capability and attitude. Companies expanding
from products into services, for instance, need to become more customer focused
and less product driven. It requires a certain set of people skills that will not just
happen— they need to be developed. One key to success is getting the right people
in the right jobs, a discipline that we call “leadership supply.” Companies that
practice this discipline find, develop, and deploy top talent in key jobs, all the time.
They track their people to ensure that talent is deployed where it can have the most
impact. Often, that means leaving people in jobs long enough to make a difference.

References:
1. https://hbr.org/2010/06/the-decision-driven-organization
2. https://qeryz.com/blog/survey-pros-cons/
3. http://www.orgwise.ca/sites/osi.ocasi.org.stage/files/resources/Decision-driven
%20Organization.pdf