Management Review:
Once a strategic direction has been identified, a company may need to revamp its organizational structure to make it work. Consultants are frequently called in to analyze the existing corporate structure to determine what changes, if any, are required so that the new plan can be successful in its implementation. The process begins by determining from the strategic plan what changes the company intends to make relative to its previous direction, i.e. new products, new markets, changes in existing product or markets, rationalization of manufacturing, etc. and what impact these changes will have on the operating departments.
Next, a thorough analysis is made of the organization. This consists of conducting in-depth interviews with the key members to identify strengths and weaknesses and to determine whether or not and to what extent the necessary skills and talents are present to maximize the plan's chances for success.
Feedback takes the form of a reporting letter and a discussion of its major points. The letter outlines the findings of the analysis and provides recommendations which might include the following:
- Reassignment of certain responsibilities
- Modification of certain reporting relationships
- Creation of new positions or elimination of others
- Identification of areas for individual, personal improvement
- Identification of latent areas of strength in the organization which may have gone unnoticed
- Identification of potential problem areas before they occur and recommendation of remedial action
The fully considered strategic plan should include consideration of the organization structure to ensure that the necessary resources are present to achieve corporate objectives.