This is the third podcast for the power sector corporate strategy study we will soon release as part of our Executive Program.

The organizational structure of a company must enable / support / empower its corporate strategy. In other words, structure must follow the strategy. In this podcast we explain how the initial corporate strategy recommendations are not enough to guide the organizational design team.

Based on the likely power sector outages and types of problems, the organizational design can take one of two general styles: highly agile and responsive OR unresponsive but designed to deliver on significant, preplanned, construction projects.

Making this decision is not easy and has enormous implications for the client. It is a decision that must be made. If we say the client will not respond to daily outages we are basically saying daily outages are not an issue and the general population must live through the outages, and suffer. How do we make such a decision?

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2 responses to How strategy shapes the structure

  1. Hello Vinay,

    It has been a long time since we have heard from you! How are you?

    Vinay, we built our very detailed organizational structures at the macro-level and did test them all. These podcasts simply narrate the study and all the detailed organizational structures, analysis and approach we used to build the organizational structures will be shared when the study training is released. This will be the largest study we have done with over 650 videos and another 650 power point files and close to 200 audio files. So every question you could possibly have on the study will be answered!

    In terms of how to build a long-term structure for a new core, that is also answered in the final materials. It comes down to developing a new strategy for the client and then building a structure to support that strategy. We have proposed a radical solution for the client.

    In terms of how to build for the long term while the short term is losing money, we basically worked out all the changes needed and the cost to make those changes. We then figured out how to pay for them. That is the only way to do it. That piece of work became a big part of the study and will likely be a very big part of the implementation program.

    I hope that answers your questions, but remember that all the detailed solutions and analyses will be made available when the study is released.

    Keep in touch more often. Okay!

    Michael

  2. michael,

    Did the team build out scenarios for long term sustainable models ? could some of them be available for viewing (without client specifics) so as to get a sense.

    i do understand that the strategy drive org structure. however, what was the economics of having an org design to support long term fix (and not band aid), specially when the core organization is not really making money..and is broken.

    So how did you go about making a call on having a team for sustainable period …while the short term economics were not supportive

    Rgds
    Vinay

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