Strategy Formulation

Strategy Formulation

There are four building blocks that can help a manager in creating a transformation.
Strategy formulation   is easier but to execute it, we need these building blocks.
  a) Decision Rights
  b) Information
  c) Structure
  d) Motivators

We   should take   steps to address decision rights and information and then design he necessary changes to motivators and structure to support the new design . But   to make good decision   we need to first:-

Step1) Identify the weakness and its source.
This can only be done by taking profiling survey by the company

Step2) Once weakness has been identified,   some actions can be taken on it.
Whatever steps that are been taken will have impact on strengthening of any one or more   of the above mentioned 17 traits in an organization.

Transformation story of Goodward insurance :
Goodward was a successful company with strong capital reserves and steady revenue and customer growth. Goodward’s top management wanted to further enhance execution to deliver on an ambitious five-year strategic agenda that included aggressive targets in customer growth, revenue increases, and cost reduction
Existing challenges for Goodward’s leadership team:-
    • There was no inter unit communication. For e.g. unit A may require help and support from unit B, however within existing structure unit B was not able to support unit A.
    • Although company executed large no of enterprise projects well on time and within in the budgeted frame, many times they required reworked since stake holders interest was not taken into account at the time of execution
    • There was no proper coordination between the departments that caused a barrier in major product launch

So they followed the above mentioned steps of taking survey and finding the root cause of the problem.

  A) Indentifying the problems
    • Information did not flow freely across organizational boundaries – survey results shows 67% people stated information...