Strategic Management: Formulation and Implementation

Pinpointing The Strategy Critical Activities

Two questions help identify what an organization's strategycritical activities are:

"What functions have to be performed extra well and in timely fashion for the strategy to succeed?" and "In what areas of the organization would malperformance seriously endanger strategic success?"
(Peter Drucker).

The answers generally show what activities and areas are crucial and where to concentrate organizationbuilding efforts.

Understanding The Relationship Among Activities

Activities can be related by the flow of material through the production process, the types of customer served, the distribution channels used, the technical skills and knowhow needed to perform them, a strong need for coordination, the sequence in which tasks must be performed, and by geographic location, and so on.

Such relationships are important because one (more) of the interrelationships usually become the basis for grouping activities into organizational units. If strategic needs are to drive organization design, the relationships to look for are those that link one piece of the strategy to another.