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- Evaluate and, if necessary, refine the business strategy. Strategy should drive structure. Strategy should provide fact-based, clear, compelling, boundary-setting answers to these questions:
- What products/services will we offer and not offer?
- Which products/services will we emphasize?
- What markets will we and will we not serve?
- Which markets will we emphasize?
- What competitive advantage(s) will cause us to be successful?
- How will we measure our strategic performance?
- Identify the business processes that are most critical to the successful implementation of the strategy. Strategy and business processes should be the two primary drivers of structure. Business processes—the activity flows through which work gets done—must be supported by the structure.
- Define the characteristics of an organization structure that supports the strategy and the core processes. To ensure that the structure evaluation is comprehensive and that there is a framework for the debate, it is best to begin by developing a set of ...