Structure follows strategy. And systems support structure.

Few aphorisms have penetrated Western business thinking as deeply as these two. Not only do they influence the Senior managers of today's large enterprises must move beyond strategy, structure, and systems to a framework built on purpose, process, and people. The concepts Top-level managers view themselves as the designers of the strategy, the architects of the structure, and the managers of the systems that direct and drive their companies the scarcest corporate resources are less often the financial funds that top management controls than the knowledge and expertise of the people on the front lines And what has kept other large, eomplex companies like AT&T, Royal Dutch/Shell, Intel, Andersen Consulting, Kao, and Corning from succumbing to the so-ealled inevitable decline of large corporations? Although the strategies, structures, and systems of these companies have little in common, their leaders share a surprisingly consistent philosophy. strategy, structure, and systems to a softer, more organic model built on the development of purpose, process, and people. In this article, we exam

From Setting Strategy to Defining Purpose

problem is not the CEO hut rather the assumption that the CEO should he the corporation's chief strategist, assuming full control of setting the company's objectives and determining its priorities. In an environment where the fast-changing knowledge and expertise required to make such decisions are usually found on the front lines, this assumption is untenable. Strategic information cannot he relayed to the top without becoming diluted, distorted, and delayed CEO TO FRONT LINE MANAGERS - STRATEGY PARTNERS.

In short, senior managers must convert the contractual employees of an economic entity into committed members of a purposeful organization.

Embedding Corporate Ambition

Traditionally, top-level managers have tried to engage employees companies need employees who care, who have a strong emotional link with the organization Three characteristics distinguish this approach from previous practicesCaptute Employees' Attention and Interest. Defining a company's objectives. Allen AT&T's objectives- becoming the world's best at bringing people together-giving them easy access to each other and to the information and services they want and need-anytime, anywhere." Get the Organization Involved. A statement of corporate ambition. ALLEN AT&T Strategy forum-60 ppl. Create Momentum.-Everyone needs to believe that the articulated ambition is legitimate and viable

Instilling Organizational Values beyond finacial aid . Financial objectives are popular performance
measures in part because tbey are "safe"; people won't dispute them is this powerful alignment between company and employee beliefs more evident than in The Body Shop, the U.K.-based beauty products retailer. Founder Anita Roddick has articulated a strong, clear business philosophy -Social altruism isn't the only way to give employees a strong emotional link to their companies. Build on Core Values- Consider Corning. When Jamie Houghton assumed its leadership in 1983, Gorning was experiencing difficult times Sow the Message- Furthermore, he incoiporatcd broad idealistic values into

action programs - for example, one to break the company's glass ceiling for women, minorities, and non-U.S. nationals. Finally, he made sure that the company's business strategies Measure Progress- corning to b a world class co by mid 90's. This standard included outstanding financial results but also encompassed superior performance on dimensions such as quality, innovation, and corporate responsibility. Equally important, employees could identify with the standard and take pride in achieving

Giving Meaning to Employees' Work

Creating that sense of fulfillment is the third challenge senior managers face as they strive to develop an energizing corporate purpose. Managers need to recognize and respond to the reality that their employees don't just want to work for a company; they want to belong to an organization But a link does imply a mutual commitment, in which the employer treats the employee not as a cost to be controlled but as an asset to be developed. Recognize Individual Accomplishments. IKEA, the world's largest home furnishings manufaeturer and retailer, is an exception. Even after the company had grown to almost 50,000 employees in 20 countries, founder Ingvar Kamprad still tried to visit each of the ehain's 75 outlets and meet every employee Andy Grove built an enormous reservoir of credibility and goodwill when he took extraordinary measures to retain employees during the memory-products bloodbaths of the mid-1980s. Grove tried to retain as many Commit to Developing EmployeesAndreassen believes that training is key to transforming workers into professionals. Beyond teaching his employees basic job skills, he u

Foster Individual Initiative 3m 15 min rule.

From Economic Entity to Social Institution