L4 Organizing for Success - 3 | Outsourcing | Strategic Management

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  Organizing for su Relationships  Relationships Assumption : An organization needs clarity on its relationships within the internal and external environments so that along with Structures and Processes one can specify the right on!guration ã Internal relationships:  clarity on  – #nteractions $etween the %nits and the entre  – &ho and where should $e the responsi$ility and authority for strategic and operational decisions ã External relationships:  apart from the emphasis on conventional operational issues li'e customer relationship management (R)* and supplier management (S)*+ there is need for clarity on the approach towards new arrangements li'e outsourcing+ alliances+ networ's and virtual relationships   #nternal relationships -,:Relating to the entre ã Principles of decentralization:  – ecisions should $e ta'en as close to the place of action as possi$le  – ecisions should $e ta'en $y those who are capa$le of evaluating the full situation  – ecisions should $e ta'en $y those who can exercise control over its implementation  – Responsi$ility and Authority can only $e given to those who are capa$le+ answera$le and accounta$le ã evolution + i e delegation of decision ma'ing+ is e.ective when:  – /nowledge is dispersed throughout the organization  – i.erent customer segments are present  – Speed of responsiveness is important  #nternal Relationships -0:Relating over Strategy ã  1hree di.erent strategy management styles:  – Strategic planning  – 2inancial controls  – Strategic controls ã  1hese terms are used here as de!ned $y oold And amp$ell in ,456: Strategies and Styles  and not to $e confused from their common usage
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