Cutting Costs Strategically
February 12, 2025
The art of meeting and exceeding the sales goals of an organization through effective planning, controlling, budgeting and leadership refers to sales management. Sales Management helps the organization to achieve the sales targets efficiently. Process of Sales Management Sales Planning Marketers must plan things well in advance for the best results. It is essential to […]
As a merchant, using affiliate marketers is your business is a difficult task. This is because affiliate marketers are themselves individual businesses. They need to be motivated and rewarded. It is the duty of the merchant or of the affiliate network to ensure that the affiliates are well paid. In this article, we will discuss […]
Every marketing management student would have heard the story about origin of branding, that it was initially used to identify and isolate a particular stock of cattle in the west. From the Wild West, branding as a concept has grown and changed beyond its original purpose. Today brands have become the common tool for us […]
The corporation has been defined in many ways as interpreted by individuals; however lawyers and economists call it a nexus of contracts. This means that a corporation is nothing but a sum of all the agreements which lead to its creation. Corporations are also defined as a device for obtaining individual profit without individual responsibility. […]
In the so called Modern times, we happen to be living in a fast paced high tech society. Use of technology has become the backbone of our daily life. You are able to be in the comfortable environs of your home or office and manage all of your domestic chores such as banking, booking an […]
The previous article discussed the five configurations of organizational structure that Mintzberg proposed as part of his theory. This article examines the role of planning, plans, and planners in each of the configuration. To start with planning is an important element of strategy whenever there is excessive standardization and where the organizational structure is mechanistic and where the technocrats are in positions of importance.
For instance, the Department of Defense or the Pentagon in the United States relies extensively on standardized work processes and planning to carry out its activities. This is the case with large organizations like GM (General Motors) as well. These organizations rely on “experts” and “planners” who form an “army of techno structural bureaucrats” who plan and who assist the organization in carrying out its activities by formalizing plans for the future.
On the other hand, startups in the software industry hardly plan for the longer term when their focus is on the next year’s results. However, the role of plans in strategy cannot be underestimated because all organizations need longer-term plans for their survival. Indeed, as the example of the planning commission in developing countries like India illustrates, longer-term plans are crucial to ensure that countries and organizations do not lose track of their sense of purpose and mission.
The role of planning is crucial in the machine bureaucracies and the professional organizations that need a vision and mission to take them forward. As we have discussed, plans, planning, and planners all contribute to the development of strategy.
Talking about strategy, there is a crucial difference in the terms strategy formulation and strategy implementation. Mintzberg and his associates researched extensively and found that in most cases, strategy formulation and strategy implementation are entirely different aspects. The difference is that whereas planners plan strategy and formulate it, managers execute strategy and implement it. Hence, there is the aspect of two different elements of the organizational structure that is involved in planning and execution of strategy.
Indeed, in many organizations, there exists a creative tension between the planners and the implementers and the way in which the organizations resolve this aspect makes the difference between organizational transformation and organizational failure that is at the heart of Mintzberg’s configuration model of strategy.
Since the contemporary business environment is characterized by rapid pace of change and unpredictable trends that take everyone by surprise, planners and managers have to ensure that their strategies take into account these aspects.
For instance, an Army commander follows the strategy to tackle an enemy unit but also must make changes on the fly to ensure that the situation on the field is amenable to their strategy.
Different organizations strategize differently and it is the nature of longer term planning combined with the adaptation to shorter-term needs that determines how well an organization performs in the real world.
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