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Business Reengineering

on and contradictory policies.2.It necessitates tremendous horizontal and vertical coordination.3.Can cause information jams and result to excess reporting.4.Can lead to loss of accountability.3.3.Guidelines to match structure to strategyConsiderable research has shown that the structure of the organization is dependent upon the strategy it adopts.The following are some guidelines that have a great significance in matching the two.Restructure to emphasize and enforce strategically critical activities.Reengineer strategic business processesDownsize, outsource and self manage Strategy and structure evolutionRestructure to emphasize and enforce strategically critical activities.Restructuring has been very core to modern businesses. It arises from the fact that some activities within a businesss value chain are more critical to the success of a business than others.Examples of this can be seen in Motorola and Coca ColaMotorola has its organizational structure designed in such a manner as to protect and nurture its legendary R & D and new product development capabilities.Coca Cola on the other hand emphasizes on the importance of distribution, advertising and written support to its bottlers.Two critical considerations arise when restructuring organizations.First, managers need to make the strategically critical activities the central building blocks for designing the organization structure. Those activities should be identified and separated into self-contained parts.The second consideration is to design the organization structure so that it helps coordinate and integrate these activities to be able to maximize the support of strategy/critical primary activities in the firms value chain and does so in a way to minimize the const of supporting activities and the time spent on internal coordination.Managerial efforts to do this in the 1990s have placed reengineering, downsizing and outsourcing as prominent tools for strategists restructuring t...

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