Brilliant strategy isn’t if it doesn’t account for the organizational changes and execution needed to implement it. When you begin with a clear strategy and then adjust your organization to assure effective execution, you will have a much greater chance of success.
Requisite Organization principles guide leaders to create effective organizational structures that drive accountability and high performance so that organizations achieve the results they’re looking for.
Without effective organizational structure, strategy can get derailed, resulting in lost opportunities and sub-optimal profits.
Innovation versus Execution
Sometimes strategies call for execution, and sometimes innovation at different points in the organization. Effective organizational design enables optimized execution and/or innovation in roles. Properly matching an employee’s capability with the capability needed for a role will create execution and productivity. Putting an employee with extra capability into a role will allow for innovation.
If your strategy calls for significant, wide-ranging change in direction, your organization will need to have excess capability throughout the organization to deal with change and innovation. Often, that does not even require different staff, just moving staff around.
Example: Mallinckrodt Baker
An example of this was with PeopleFit’s engagement with Mallinckrodt Baker, a specialty chemicals company.
After seven years and a total of 0.2% growth, PeopleFit was brought in to work on the organizational structure. Within one year, revenues had doubled from $175 million with no layoffs and much more engagement and satisfaction from employees. The company reached $450 million in sales before being sold four years later.
Contact PeopleFit to discuss your needs to connect strategy to execution.