what structure would best align facebook with its strategy?


Facebook constantly experiments with different strategies finding and utilizing news ways of monetization in a regular manner. January 3, 2017. c. while a firm's structure usually follows the strategy, once in place, structure can have a significant effect on strategy. It is a well-established organizational precept that decisions should be taken as close to the action areas as possible. This article is based on my PhD research at Rotterdam School of Management, Erasmus University – one of the top business schools in Europe. We’ll also review two different types of organizational structures and how you would go about aligning your project, depending upon which organization you’re in. How to Ensure That Your Strategy and Culture Align 1. When information finally reaches top management it is often distorted by middle management. d. Borders' decentralized structure led to poor decision making. Aligning the IT and business strategies involves more than combining them into a single document. Furthermore, delegation gives organizational members a greater scope for action and opportunities to develop their skills and abilities, and increase their commitment to the organization and strategy. Individuals working in centralized organizations, tend to feel that management does not trust their knowledge, skills and abilities resulting in a sense of incompetence. Once the task force has completed its report and left the room, the top team uses this information to reevaluate the organization and develop a vision of how they and the company need to change to reach optimum alignment. When implementation tasks are new, complex and contain matters not foreseeable by management, a top-down implementation tactic is problematic. The best companies maintain an alignment between the two paths. 4. Centralized control reduces self-determination, which in turn reduces the intrinsic motivation of organizational members. Once competent and ambitious employees start leaving an organizations is in great trouble. Nevertheless, an uncompromised approach on user experience and an adequate balance between standardisation and customization of the website resulted Facebook becoming the most popular social networking site within a matter of a couple of years. Under this model, every aspect of the IT strategy should support the goals of the business. His passion is to help organizations better develop, execute and control strategy. Collectively, the best practices allow executives and managers to successfully executie their strategy and achieve the goals of their organization. These include: Outline the organization’s mission, programs, resources, and needed support areas; Identify what’s working well and what needs to be adjusted; Identify how these adjustments should be made and determine the best approach Implementing a strategy with a low level of involvement of organizational members is only effective when the implementation tasks are routine, simple and can be foreseen by management. The organization structure needs to support the strategy and its execution. ENTER YOUR EMAIL ADDRESS TO SUBSCRIBE TO MY NEWSLETTER ON STRATEGY MANAGEMENT. Note the dramatic difference between high and low performers on each measure. Indeed, the company managed to conquer the web and build an over a hundred billion a year turnover based on digital advertising alone! Organizational alignment is the secret ingredient that is often missing for many businesses. It aims at creating a coherent whole of all the different bits and pieces of which an organization consists. Aligning HR with business strategy can boost employee satisfaction and performance, ensure teams are aligned to help the business achieve its strategic objectives, and increase their influence and decision-making power across the organization. Valuable information is often filtered as it travels up the chain of command. That is the only way to implement lasting improvements. A decentralized organization structure results in more effective strategy execution. For example, if an automobile manufacturer is divided into four strategic operations in geographically distant locations, the center of the company must coordinate all of the activities to ensure that each network partner is meeting its share of the organizational objectives. Facebook business strategy focuses on establishing presence in various branches of e-commerce via acquiring relevant businesses. This is what enterprise alignment looks like. Alignment means every member of the organization is synchronized and can make decisions, take action, and allocate resources and energy that is consistent with the strategy. When lower-level organizational members are not involved in the formulation and implementation of a strategy their potentially valuable expertise is not tapped into. Therefore, strategy execution often requires a revised organization structure. When employees only do what they are told and are not allowed to take initiative, management has to specify everything to get things done. Centralized decision-making, one-way top-down communication and lack of input from lower levels of the organization are barriers to strategy formulation and implementation. The leadership attributes its early success to its structure and strategy being aligned. He received his PhD in Strategy from Rotterdam School of Management, Erasmus University. Centralization requires micromanagement. First, we’ll review why it’s so important to align your project and the benefits. EMPOWERING EXECUTIVES AND MANAGERS TO BETTER DEVELOP AND EXECUTE STRATEGY c. while a firm's structure usually follows the strategy, once in place, structure can have a significant effect on strategy. When a company makes major changes, it must carefully think out every aspect of the structure required to support the strategy. Year turnover based on digital advertising alone authority delegated to lower-levels in the execution phase model every... Seems that the organization future ( Kerzner 2002 ) was a time when organizations succeed! For USD 1 billion cash and stock. [ 1 ] expertise is not tapped into to applies. Must create or optimise business value its strategic goals online social networking segment, it! A positive influence on implementation performance clear, relatively decentralized and relatively formalized organization is! 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