Leadership for strategy

implementation
 Matrix Organization Departmentalization

FIGURE 6–6
G.Dessler, 2003

April 18, 2006 LIS580- Spring 2006 2

Matrix Organizations
Advantages Disadvantages
• Access to expertise. • Confusion of
• Stability of permanent command.
department • Power struggles and
assignments for conflicts.
employees. • Lost time in
• Allows for focus on coordinating.
specific projects, • Excess overhead for
products, or customers. managing matrix
functions.
G.Dessler, 2003

3
Removing External Boundaries
•Virtual Organization
• An organization that consists of a small core of full-time
employees and that temporarily hires specialists to work on
opportunities that arise.
•Network Organization
• A small core organization that outsources its major business
functions (e.g., manufacturing) in order to concentrate on
what it does best.
•Modular Organization
• A manufacturing organization that uses outside suppliers to
provide product components for its final assembly operations.
Today’s Organizational Design Challenges

1. Keeping Employees Connected

2. Building a Learning Organization
3. Managing Global Structural Issues
CORE CURRICULUM
Three Business Horizons
Application to Case Studies
• The first step is to identify the strategy that the general manager is trying to
achieve.
• The next step is to spell out all of the functional and administrative fits that
need to be achieved to accomplish the strategy. Usually, this list is much
longer than any general manager has time to address, so the important
next step is to identify those fits that are crucial to the achievement of
strategy and which should receive top priority.
• The last step is to develop an implementation plan, one that will (1) indicate
the mode the general manager should adopt and (2) spell out the crucial
details and step-by-step actions that will be taken and the administrative
and leadership skills that are key to successful implementation.
1. What strategy is the general manager trying to achieve?
2. Which functional policies need to be implemented to achieve the strategy? Which functional policies require the greatest
change from the status quo, and which ones are most crucial for the achievement of the strategy?
3. Which management systems and organization processes need to be implemented to achieve the strategy? Which of these
management systems and organization processes require the greatest change from the status quo, and which are most crucial
for the achievement of the strategy?
4. What “misfits” exist in the company? Are they functional or dysfunctional? Should they be corrected?
5. What is the mix of strategic, organizational, and interpersonal considerations that impact the implementation of the strategy?
6. Should the general manager make key implementation decisions alone, or should they be delegated or the result of a
collaborative process?
7. Which groups or individuals will be most affected by the implementation of the strategy, and how should their concerns be
managed?
8. What should the timing be of the implementation plan?
9. Are the objectives of the implementation plan realistic? How much is being accomplished over what period of time?
10. In light of the above, what implementation mode should the general manager follow?
11. What administrative and leadership skills will the general manager need to exercise?