How to implement a new strategy without disrupting your organization

How to implement a new strategy without disrupting your organization

How to implement a new strategy without disrupting your organization

Kaplan R.S., Norton D.P.Harvard Business Review, March 2006, Vol 84 No 3, Start page: 100, No of pages: 9

Purpose – To explain how companies can avoid the distractions associated with organizational restructuring by adopting a strategic system for aligning structure and strategy. Design/methodology/approach – Discusses the ways in which changes in the nature of competition and the economy have driven a search for new organizational forms. Argues that structural change is not the most appropriate tool for the job, noting that restructuring is disruptive, takes time for employees to adapt and causes the loss of tacit knowledge as disaffected workers move elsewhere. Discusses the use of a balanced scorecard system to evaluate the type of structure required from four perspectives: financial, customer, process and the learning and growth perspective. Explains how a strategy system based on the balanced scorecard approach can be implemented. Shows how strategic themes group together different corporate-level objectives, measures and initiatives and how they can be mapped across the various perspectives of the balanced scorecard framework. Provides two case studies illustrating the use of this approach: mapping corporate strategy and working to overcome organizational silos at DuPont; and coordinating diversity in the Royal Canadian Mounted Police (the ”Mounties”). Originality/value – Introduces a management tool to support the implementation of corporate-level strategies.ISSN: 0017-8012Reference: 35AH159

Keywords: Balanced scorecard, Change management, Corporate strategy, Organizational structure, Strategic alignment