Proactive, Winning Companies Invest in Organizational Strategy
Change is inherent in business, but the swift pace of change in today’s marketplace can be dizzying. Change is unavoidable, but when change isn’t strategic, it can be costly. Nearly one-quarter of value loss occurs during the target-setting phase, suggesting that the full financial and organizational potential might be compromised before transformations even start.1
Further, 31% of CEOs are fired because they managed change poorly2. But having a strategy and a partner will ensure the right aim is met, you plan well, communicate well, and stay on track to see the change through.
The key to success lies in strategic preparation and agile execution. Winning companies invest in an organizational strategy to anticipate pressures and prepare for changes rather than be forced into them. Being reactive is tantamount to losing.
As you prepare for what comes next, our team will help you evaluate the foundational structure, enabling your organization to unleash its full potential.
A business’s organizational strategy is the guiding compass that illuminates necessary roles, processes, and structural elements to forge a clear path toward the next growth stage. Companies secure their competitive edge and ensure long-term success in an ever-evolving business landscape by engaging in a guided process to craft a sophisticated strategy.
The typical organization today has undertaken five major firmwide changes in the past three years — and nearly 75% expect to multiply the types of major change initiatives they will undertake in the next three years.3
4 key change scenarios where organizational strategy investments make an outsized impact
Tapping Into New Markets
Organizations must continuously innovate and diversify their product and service portfolio to sustain growth. Investing in organizational strategy empowers companies to identify and seize opportunities in new markets and segments. By allocating resources and creating the necessary structures and processes, businesses can leverage their human capital to drive revenue growth and establish a strong presence in new markets.
Organizational strategy guides companies in identifying the right talent to support market expansion. It involves assessing the skills and competencies required to succeed in new markets and attracting top talent with the necessary expertise. Additionally, it identifies and emphasizes the development of existing employees, enabling them to adapt effectively to the demands of new markets.
Investing in organizational strategy is crucial when planning for the complexities of scaling and expansion. By aligning resources with strategic goals, companies can scale operations efficiently, optimize processes, and drive performance.
An organizational strategy enables companies to assess their current operations and identify areas that can be scaled efficiently. By analyzing processes, systems, talent, and capital, companies can determine the scalability potential of their business model. This assessment helps identify bottlenecks, optimize workflows, and implement strategies to scale operations seamlessly.
A robust workforce is imperative in the fast-paced realm of scaling a business. The orchestration of an organizational strategy becomes paramount as it empowers companies to attract, manage, and develop their talent.
Digital transformation has become a pressing necessity for businesses across industries. Investing in organizational strategy enables companies to revolutionize their digital experiences, such as customer acquisition and user experience. Through strategic planning, companies can identify the talent needed to optimize digital operations and meet the expectations of digitally-savvy customers.
Digital transformation often requires cross-functional collaboration to break down silos and foster innovation. Organizational strategy facilitates collaboration by creating agile, cross-functional teams that bring together diverse skill sets and perspectives. It encourages collaboration between departments, enabling seamless coordination and knowledge sharing.
Leadership transitions are critical moments that demand attention to organizational strategy, ensuring seamless transitions and alignment with new goals. By identifying essential leadership skills and redefining the structure, companies set the stage for continued growth and success. A thorough organizational strategy facilitates effective succession planning, identifying potential leaders, and bridging skill gaps through targeted development and focused talent searches.
The organizational strategy provides a framework for developing change management plans, transparent communication, and addressing employee concerns. Companies maintain morale and engagement throughout the transition by fostering open communication and support.
How to Ensure a Winning Plan
In an era of relentless change, winning companies invest in a partner to proactively navigate the evolving business landscape. Whether it’s leadership transitions, digital transformation, tapping into new markets, or scaling operations, a strategic approach is essential for success.
With the right strategic partner, companies gain the foresight, knowledge, and planning needed to thrive amidst change. From anticipating future trends to mitigating risks and making informed decisions, strategic planning is the key to staying ahead and achieving long-term success in today’s fast-paced business world—partner with us to unlock the power of organizational strategy and position your company for growth and excellence.
More Reading on Organizational Strategy
What are the types of organizational strategies?
In order to simplify and clarify the concept of organizational strategy, we will deconstruct the four primary types of organizational strategies, analyze four widely adopted organizational strategies, and explore the significance of these strategies in driving organizational growth, profitability, and sustainability.
What are common organizational strategies?
To adhere to strategic best practices, it is essential to identify an organizational strategy that is in line with your company’s performance objectives, culture, and mission–and customize it accordingly. These organizational strategies have consistently demonstrated their effectiveness as strong strategic frameworks applicable across various industries.
What are the four basic elements of organizational strategy?
Understanding these four elements of the strategy will make identifying, implementing, and improving the ideal organizational strategy for your business a less complicated and risky endeavor.
1 McKinsey & Company. (2021, December 7). Losing from day one: Why even successful transformations Fall short. McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/successful-transformations
2 Murphy, M. (2015, July 16). Leadership styles are often why CEOS get fired. Forbes. https://www.forbes.com/sites/markmurphy/2015/07/16/leadership-styles-are-often-why-ceos-get-fired/
3 Organizational Change Management: HR insights. Gartner. (n.d.). https://www.gartner.com/en/human-resources/insights/organizational-change-management