Jeffrey W. Bennett, Thomas E. Pernsteiner, Paul F. Kocourek, and Steven B. Hedlund
Finding the proper organizational model for a given firm is inherently difficult, but not impossible. If aligning the organization with the strategy is necessary for success, then finding out how the organization is impeding the strategy can lead to important insights about what has to change. Most organizations were not built by master designers; they have evolved over time in response to forces they see … [ Read more ]
Content: Quotation | Authors: Jeffrey W. Bennett, Paul F. Kocourek, Steven B. Hedlund, Thomas E. Pernsteiner | Source: strategy+business | Subjects: Management, Organizational Behavior
Jeffrey W. Bennett, Thomas E. Pernsteiner, Paul F. Kocourek, and Steven B. Hedlund
It is part of management’s role to see that all the interactions that take place internally are performed more efficiently than they could be in an open market. That is, the savings in transaction costs must be greater than the increase in administrative costs and the potential decrease in motivation. Many companies find that applying this logic to their organizational models leads to a rethinking … [ Read more ]
Content: Quotation | Authors: Jeffrey W. Bennett, Paul F. Kocourek, Steven B. Hedlund, Thomas E. Pernsteiner | Source: strategy+business | Subjects: Management, Organizational Behavior
Jeffrey W. Bennett, Thomas E. Pernsteiner, Paul F. Kocourek, and Steven B. Hedlund
Corporations of any significant size cannot make all the necessary transactional decisions “with one mind.” To provide manageable spans of control and to benefit from functional specialization, companies are forced to subdivide their organizations. Unfortunately, this subdivision fragments the information, decision rights, measures, and rewards that guide individual decisions. Rational individuals tend to strive for narrow optimums defined by functional or business-unit objectives, rather than … [ Read more ]
Content: Quotation | Authors: Jeffrey W. Bennett, Paul F. Kocourek, Steven B. Hedlund, Thomas E. Pernsteiner | Source: strategy+business | Subjects: Management, Organizational Behavior
The Organization vs. The Strategy: Solving the Alignment Paradox
It’s not vision that makes a company successful. What sets the top performers apart is the organizational models they develop to realize their aspirations.
Content: Article | Authors: Jeffrey W. Bennett, Paul F. Kocourek, Steven B. Hedlund, Thomas E. Pernsteiner | Source: strategy+business | Subjects: Management, Organizational Behavior