The strategic design perspective refers to a system that an organization deliberately constructs in order to achieve its goals. According to this approach, it is important to understand the core principles of the design of the organization. This can be achieved through aligning the design of the organization with the strategies employed. The organization should also ensure that the design and strategy fit the organizational environment where the organization operates. By following these, organizational managers have the potential of driving organizations to unprecedented levels of success (Evans, 2000). The design puts more emphasis on the organization’s effectiveness and efficiency. Whereas efficiency refers to the manner in which strategic goals are achieved using minimum resources and expenditure, effectiveness connotes a situation where the accomplished goals meet the necessary standards to boost the organization to succeed.
King Arthur Flour
Over the last 200 years, King Arthur Flour has been characterized by consistency in making flour. This is not a simple fact considering that there are many competitors in the industry. To achieve this consistency, the organization has an effective management which drives it towards achieving their targets through an efficient and effective manner (Delong, 2007). Most importantly, all employees understand the value of efficiency and effectiveness; hence give their best in order to ensure the company succeeds.
Apart from the hardworking employees and dedicated managers, the organization makes good use of the strategic design. This means that it incorporates into its agenda the importance of effectiveness and efficiency. One thing that the company has been consistent in is creating strategies that generate the relevant design for the organization. This gives the organization the competitive advantage over its competitors. Through such consistency, King Arthur Flour has managed to provide reliable and speedy products and services to its customers. The organization’s strategy is to reduce the duration by which the products move from the industry to the market to ensure easy accessibility by people. This is consistent with the perspective of strategic design since it promotes effectiveness. With this happening, customers are assured of consistency and reliable services. By 1984, King Arthur had gained wide coverage in terms of supplying flour to clients. To meet this goal, the organization concentrated on fair practices, ensuring the company produced the highest-quality flour. This has played a significant advantage of the organization.
Success of this company was also boosted by differentiation and integration process. Differentiation involved strategic grouping (through defining jobs, processes, and departments) while integration involved aligning the organization’s elements. King Arthur Flour’s production process, for instance, was subjected to this process. By doing this, the management was able to allocate necessary incentives and resources to perform the tasks that were assigned to them. To boost the performance, the organization’s operation strategy fitted the environmental conditions. In addition to this, the various components of the company were aligned to the strategy employed. This proved to be effective and efficient.
As per the above analysis, King Arthur Flour relied on the strategic design to propel the company to great heights. Through aligning the objectives with the design, King Arthur Flour managed to maximize efficiency and effectiveness; two components that are essential for the development of any organization. King Arthur Flour Company is a perfect example of the strategic design approach in practice.
The Namaste Solar Company is another good example on how the strategic design approach is beneficial to companies and organizations. Although the company started as a young one, it grew and developed at a breath-taking speed which boosted its credentials among the clients, winning the rust of the clients. Without implementing this design, there is doubt whether the organization could have become successful.
The design the organization implemented is very consistent with the perspective of strategic design because it meets all the elements required. For instance, it promotes effectiveness and efficiency. After a ballot initiative was passed in Colorado in the year 2004 for the establishment of a renewable electricity standard, an opportunity presented itself to Jones (who could late become a key partner in the company). He shared his idea with his two friends who agreed to work with him in order to develop the project (Lawrence, 2010).
One of the things that facilitated the success of this organization is the fact that the key partners understood what it entailed coming up with a strategic design. First, they agreed on a decentralized system of decision-making. Hey then agreed on equally sharing rewards and risks. This was a great start as they got to know the nature of the business they were entering. It is only through understanding this that one can come up with efficient and effective strategies of development. Without this, it would prove difficult to understand what should be done in order to boost the credentials and credibility. It would also prove difficult to set out goals and mechanisms through which these goals can be implemented.
The partners of this company aligned the design of the organization with its strategy. This was essential as it ensured that the strategy and design were consistent to each other in an attempt to improve effectiveness and efficiency. One way of promoting efficiency is through delegation of duties. In Namaste, the decision-making process was decentralized. The company gave employees a chance to take part in decision-making making processes, making them feel part and parcel of the company. In essence, this would promote their confidence and ensure they take responsibility in running the organization. Although competition for employees at this time was intense, the company managed to hire individuals who proved to be a good fit to the company. This was essential in boosting effectiveness. Responsible employees have the ability to boost the operations of the organization, increasing its operations.
The company also employed another strategy. It requires that all employees should have a share(s) in the company (Lawrence, 2010). In essence, this would make employees the owners of the company; hence they would be motivated to work hard. This proved to be a masterstroke as the organization grew to unprecedented heights. All in all, the company’s ability to understand its strategic design and to align it to its goals proved to be crucial. This resulted in effectiveness and efficiency.
Delong, T., Holian, J., & Weiss, J. (2007). King Arthur Flour. Woodstock, Vt.: Countryman Press ;.
Evans, J., & Dean, J. (2000). Total quality: Management, organization, and strategy (2nd ed.). Mason, OH: South-Western College Pub.
Lawrence, A. (2010). Namaste solar. S.l.: Richard Ivey School of Business.