The Organization’s Structure: Aligning Strategy and Structure

In this chapter, we examine the intrinsic connection between an organization’s strategy and its structure. We comment on the different governance modes and the role of the strategic planning function, delving into the challenges of organizing the structure to foster radical innovation. We highlight how the pursuit of radical innovation demands a certain degree of separation, achievable through both structural and temporal means. Structural separation involves a formal division within the organizational structure, while temporal separation relates to the timing and pace of innovation. We also discuss how companies often expedite innovation by acquiring new startups or taking equity positions in them.