Question

Which do you think changes first, strategy or structure? After formulating your answer and making your case, argue the opposite position.

Answer 1

Which do you think changes first, strategy or structure? After formulating your answer and making your case, argue the opposite position.

Structure follows strategy. Structure is the organization of the processes necessary to accomplish the strategy and people means that the organization must have the engaged individuals required to make that strategy happen. All aspects of an organization’s structure, from the creation of divisions and departments to the designation of reporting relationships, should be made while keeping the organization’s strategic intent in mind. Strategy lines up the markets in which a company will compete and proclaims a targeted customer base asserting the matters by which the company will seek to differentiate itself. The way you organize your company or organization to optimize the pursuit of strategic objectives is an important part of organizational design. Other design elements, such as hiring and personnel practices, communication and decision making systems, reward, recognition and renewal systems, all must be aligned with chosen said structure, but first you have to decide upon the optimal structure for attaining your strategic objectives