Xerox Case Study

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2.2. Anne Mulcahy didn’t alter with the matrix structure of Xerox when she was appointed as CEO, but bring in an innovative structure and combine the two so that Xerox can operate in a combined matrix and innovative structure. Restructuring is often accompanied by a shift in authority and the balance of power. Innovative organisation structures are characterised by their creativity, lack of formal reporting relationships and informality. In some cases, large organisations need to lay special emphasis on their creativity and inventiveness. ( )

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Strategy before structure?[pic 2][pic 3]

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Building the organiation’s, structure:[pic 5][pic 6]

Basic principles

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Choice of management style and culture[pic 8][pic 9]

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Types of organizational structure

Organisational structure for innovation

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Motivation and staffing in strategy implementation

Figure 12: Organisational structure and people issues 449

The task of developing the strategy took place at the center of the organisation. The job of implementing it then fell to the various functional areas. Chandler’s research suggested that once a strategy had been developed, it was necessary to consider the structure needed to carry it out.

Summary of the five main criticisms of the strategy-first, structure-afterwards process

- Structures may be too rigid, hierarchical and bureaucratic to cope with the newer social values and rapidly changing environments of the 1990s.

- Type of structure is just as important as the business area in developing the organisation’s strategy. It is the structure that will restrict, guide and form the strategy options that the organisations can generate. A learning organisation may be required and power given to more junior managers. In this sense, strategy and organisational structure are interrelated and need to be developed at the same time.

- Value chain configurations that favour cost cutting or, alternatively, new market opportunities may also alter the organisation required.

- The complexity of strategic change needs to be managed, implying that more complex organisational considerations will be involved. Simple configurations such as a move from a functional to a divisional structure are only a starting point in the process.

- The role of top and middle management in the formation of strategy may also need to be reassessed: Chandler's view that strategy is decided by the top leadership alone has been challenged. Particularly for new, innovative strategies, middle management and the organisation's culture and structure may be important. The work of the leader in empowering middle management may require a new approach – the organic style of leadership. (Lynch. 2009: 455)

2.4. Implications of strategy and structure being interlinked – the concept of “strategic fit”

There is a need to ensure that strategy and structure are consistent with each other. For an organisation to be economically effective there needs to be a matching process between the organisationꞌs strategy and its structure; this is the concept of strategy fit. Strategy fit is the matching process between strategy and structure. (Lynch.2009: 454)

2.5. Managing strategic change

Strategic management invariably involves change for people working in organisations. Sometimes they resist such proposals and make strategy difficult to implement; sometimes they are enthusiastic and make a significant contribution to the proposed developments. Understanding and exploring the impact of change on people is therefore important for strategy implementation.

Basics

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Organisational change

Strategic change

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Analysing the causes of change

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Managing strategic change

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Prescriptive approaches

Emergent approaches

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Developing a strategic change program

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International issues

Figure 3: Managing strategic change.

Lynch see organizational change takes place continuously within organizations and the pace is represented by two extremes:

- Slow organizational change which is introduced gradually and is likely to meet with less resistance, progress more smoothly and have a bigger commitment from the people involved.

- Fast organizational change introduce suddenly, usually as part of a major strategic initiative, and is likely to encounter significant resistance even if it is handled carefully.

Strategic change according to Lynch is the proactive management of change in organisations to achieve clearly defined strategic objectives. Either prescriptive or emergent strategic approaches may be utilized. In prescriptive theories change means the implementation actions resulting from the decision to pursue a chosen strategy. In emergent theories change can sometimes mean the whole process of developing the strategy, as well as the actions that result after it has been developed. This may involve experimentation, learning and consultation for those involved in the change. According to him it is important to understand the causes of strategic change if the change is to be managed effectively.(Steyn & Schmikl. 2015:126)

2.6. Organisational structures and procedures for innovative companies

Kanter surveyed a number of US companies

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