What is Organizational Strategy?

At its most basic, an organizational strategy (or OS for short) is a plan that specifies how your business will allocate resources (e.g., money, labor, and inventory) to support infrastructure, production, marketing, inventory, and other business activities.

When you sit down to create your organizational strategy, you should first divide it into three distinct categories:

1. Corporate Level Strategy
2. Business Level Strategy
3. Functional Level Strategy

Think of each category as a building block in the larger organizational strategy that guides your business. Here’s a brief description of each.

Corporate Level Strategy

Corporate level strategy is the main purpose of your business — it’s the destination toward which your business is moving.

• Concentration
• Diversification
• No Change
• Profit
• Investigation
• Turnaround
• Liquidation

Business Level Strategy

Business level strategy is the bridge between corporate level strategy and much of the “boots-on-the-ground” activity that occurs in functional level strategy. Because of that, business level strategy is more focused than the corporate level strategy that drives it.

Functional Level Strategy

Functional level strategies are the specific actions and benchmarks you assign to departments and individuals that move your business toward the goals created by your corporate level strategy.

Why Does Your Business Need an Organizational Strategy?

1) Sets Direction and Priorities

An organizational strategy gives your business direction and priorities. It defines success and shows you what activities you should prioritize to move your business toward its goals.

2) Aligns Teams and Departments

Getting all your departments and teams pulling in the same direction is hard enough. Without an organizational strategy, it’s nearly impossible.

3) Clarifies and Simplifies Decision Making

With an organizational strategy in place, you can reduce the number of decisions you have to face and clarify which ones make the most sense based on your goals.

4) Allows Your Business to Adapt

Your organizational strategy allows your business to adapt to problems that arise along the way, so you can continue moving toward your ultimate goal.

Key Features of an Organizational Strategy

• Realistic
• Measurable
• Specific
• Limited
• Coordinated
• Focused
• Delegated

Examples of Organizational Strategy

1) Cost Leadership

The cost leadership strategy involves leading your particular market in regard to the cost of the goods or services you provide.

2) Differentiation

The differentiation strategy involves making your product or service different from and more attractive than those of your competitors.

3) Focus

Focus organizational strategies identify and target niche markets that are smaller than a business’s regular market but can be extremely popular once the business has established a presence there.

4) Growth

Growth strategy involves any activities that serve to increase some variable within your business, such as sales or geographical reach.

5) Rationalization

Rationalization may involve discontinuing a product, laying off staff, or streamlining operations to focus on what your business does best.

Don’t Set It and Forget It

No organizational strategy is perfect the first time, so don’t set it and forget it. Review the results, and tweak them if necessary to ensure success.

The Best Way to Create an Organizational Strategy

One of the best ways to start creating an organizational strategy is to examine your current procedures. Scheduling, for example, is notoriously complicated. Prepare your business for the changes to come by streamlining the process so your team can better adapt once you set your organizational strategies.

Few things can help you in that regard the way scheduling software can. Apps like Sling provide everything you need — an easy-to-use interface, powerful communications features, time clock, labor analytics, and more — to reduce the time it takes to schedule your employees.

For more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com today.