Why Is Organizational Strategy Important To Managers?

Why is organizational strategy important to managers scaled 1 Why Is Organizational Strategy Important To Managers?

Organizational strategy may be up to C-suites, but that doesn’t mean it isn’t important for managers.

Gaining a comprehensive understanding of your company’s organizational strategy – and the long-term goals that inspired it – can help guide your management strategies and ensure your department’s efforts align with your organization’s long-term vision. 

But what exactly is an organizational strategy, and why is it so important for managers? 

In this blog, we’ll explore why a carefully crafted organizational strategy can be a powerful asset for managers that want to generate steady and sustainable success. 

We’ll also discuss how organizational strategy can enhance management outcomes – from improved decision-making and resource allocation to increased innovation and competitiveness – and take a look at a few popular examples every manager should be aware of. 

So whether you’re an experienced department head or recently-promoted manager, read on to discover why organizational strategy is important for your success

Why Is Organizational Strategy Important?

Organizational strategy provides an essential roadmap for decision-making that ensures critical choices regarding resource allocation, sales and marketing efforts, production processes, and more, are in line with your company’s long-term vision.

By establishing a shared foundation, organizational strategies promote more strategic and agile decision-making, simplifying tough choices like navigating emerging growth opportunities.

Organizational Strategy Examples

Still not sure about how a new organizational strategy is important to your managerial success? Let’s take a look at three of the most common organizational strategies businesses implement across industries

We’ll examine what each strategy means, the changes that may occur when adopting it, and how managers can support implementation. Let’s get started!

Market Penetration

If your company implements a market penetration strategy, knowing what it means is essential. 

Market penetration hinges on gaining increased market share through aggressive sales and marketing tactics to promote existing products and services. Common changes to expect when your company adopts a market penetrations strategy include:

  • Updated, aggressive product and service pricing
  • Enhanced sales and promotions
  • Hyper-targeted marketing campaigns 
  • The adoption of new distribution channels 
  • Prioritization of product quality improvements 
  • An emphasis on stand-out customer engagement and service 

As a manager, the adoption of a market penetration strategy means that prioritizing clear communication with your team about upcoming changes will be essential. You should also prepare to retrain and support your team as these significant shifts take effect.


Diversification stimulates long-term growth by expanding into new industries, territories, and markets.

Expanding operations via diversification aims to avoid the high levels of risk associated with “putting too many eggs in one basket.” That means if your company adopts a diversification strategy, you should expect the introduction of new and diverse revenue streams. It can also mean you’ll be targeting new consumer demographics, geographical regions, and product types.

To support the success of this organizational strategy, managers can educate their teams on the new directions the company has elected to pursue. 


Innovation-based organizational strategies aim to drive sales and improve profitability by investing in research and development that leads to new, improved, and unique products or services. 

Perhaps unsurprisingly, the adoption of an innovation-based organizational strategy means managers should be prepared for significant changes to their company’s product and service offerings. 

If your company has recently implemented an innovation-based organizational strategy, you should prepare for changes like:

  • The creation of new products or services
  • Comprehensive customer and market research
  • Prioritization of customer experiences and service
  • An emphasis on improving production and delivery processes

As a manager, you can support the success of an innovation-based organizational strategy by educating your team on the new goals, expectations, and offerings that will take center stage. You can also introduce the spirit of the organizational strategy to your office by supporting a creative, freethinking, and experimental environment that supports new sales, marketing, and product ideas. 

Implementing an innovation-based organizational strategy is also the perfect time to pay close attention to employee feedback. If you’re engaging your team and supporting their creativity, you may discover your company’s next big idea in your very own department.

How Medallion Partners Stand Out In Executive Search

Medallion Partners is an executive search and organizational strategy consulting firm with 15 years of experience connecting organizations across industries with exciting, innovative, and impactful executive candidates that help them drive growth, revenue, and reach to new heights. 

We also specialize in helping our clients define their long-term goals, identify competitive advantages, and craft effective organizational strategies that empower them to turn their vision into a reality. 

Let’s work together to create a roadmap for your company’s long-term success. Contact us today to get started.

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