Rethinking Organisational Strategy: The Case for Department-Specific Approaches

In the dynamic landscape of business, the one-size-fits-all approach to strategy is becoming increasingly obsolete. Andrea Belk Olson, in her insightful Harvard Business Review article, presents a compelling case for why each department within an organisation should develop its own strategy. This blog delves into the key insights from Olson's article, exploring the importance of tailoring strategies to fit the unique needs and goals of individual departments.

The Pitfalls of a Singular Strategy

Traditionally, organisations have relied on a singular, top-down strategy. However, this approach often leads to varied interpretations and a lack of alignment in implementation. Olson argues that a corporate strategy, while providing a broad direction, is too general to effectively guide the day-to-day operations of different departments.

Advantages of Departmental Strategies

1. Relevance and Precision: By adopting department-specific strategies, organisations can ensure that the actions of each department are directly aligned with the overall objectives of the company. This targeted approach allows for a more precise and relevant framework for decision-making and action.

2. Innovation and Adaptability: Individual strategies encourage departments to innovate and adapt within their specific context. This autonomy fosters a culture of continuous improvement and agility, crucial in a rapidly changing business environment.

3. Synergy and Collaboration: When each department has its own strategy, it paves the way for better collaboration and complementarity. Departments can work together more effectively, understanding how their strategies interlink and support the overarching goals of the organization.

Conclusion

Olson's perspective challenges the conventional wisdom of strategic planning, advocating for a more decentralised and nuanced approach. In today's fast-paced and complex business world, the need for tailored, department-specific strategies is clear. Such an approach not only enhances the effectiveness of each department but also strengthens the organization as a whole, paving the way for sustained success and growth.

[3 Reasons Why Every Department Needs Its Own Strategy, Andrea Belk Olson, Harvard Business Review, January 2024]