Today, successful organizations are those that have intelligently and strategically designed the most appropriate and timely organizational structure to be profitable. These organizations have managed to maintain a permanent status quo in good strategic design, imagining a future and visualizing opportunities where others do not exist. The leaders of these organizations have been able to identify and take advantage of the key points in business success, maintaining a strong and perennial culture and control throughout the organization. They also have an ideal organizational structure. This essay aims to explain what makes certain organizations have a superior and sustainable performance over time with respect to others? What makes them sustainable over time? In this way,It will show the main and secondary factors to maintain a high and sustainable business performance. Within the business world there are organizations that have had sustainable success for a long time. These companies have implemented a key and unique strategic design to achieve success. According to Morosini (2014) these designs have started with a dream and a prototype to carry it out. Likewise, they must have a special leader with people and teams to be able to have a superior performance. In turn, these companies have strong cultures and specific values that create common patterns among all staff.These companies have implemented a key and unique strategic design to achieve success. According to Morosini (2014) these designs have started with a dream and a prototype to carry it out. Likewise, they must have a special leader with people and teams to be able to have a superior performance. In turn, these companies have strong cultures and specific values that create common patterns among all staff.These companies have implemented a key and unique strategic design to achieve success. According to Morosini (2014) these designs have started with a dream and a prototype to carry it out. Likewise, they must have a special leader with people and teams to be able to have a superior performance. In turn, these companies have strong cultures and specific values that create common patterns among all staff.
These designs have been well structured organizationally to carry out the progress of the company, with a lot of structural adaptation. However, these structures are not sustainable over time, for this the organization must reinvent itself from time to time and generate the best innovations.
In general, to specify strategic designs of organizations, what must be done is "to see and observe the world in an imaginative way, that is, differently from the way most people see" (Morosini, 2014). For this first step, the strategic designer of organizations implements the concept of co-opetir, which consists of competing and cooperating at the same time, in a tool to be implemented. This tool begins with customers and suppliers, because it is the essence and start-up of the business.
Competitors and complementors are also included, who nowadays are seen as more competitors than complementors. It is necessary to identify competitors where it is not seen and complements who will help to sell more, attract more clients and reduce costs. The secret is knowing how to identify complementors where no one has identified, thus, among them they learn new techniques that are absent from each company, with a mutual symbiosis.
Others involved are new entrants, substitutes, regulators and lobbyists. The presence of new entrants is due to low technological and regulatory entry barriers and allows free competition. Substitutes are tools and instruments that are used to give added value to business activities, as well as to give value to the product or service. Lobbyists are critical of business activity and the impact it has on society. Regulators are generally future lobbyists.
After using this tool and identifying the observations, they must be connected and linked to generate innovative strategies, which are the center of all successful strategic design of organizations. Thus, as Morosini (2014) affirms, the strategy is “to answer three questions: Where to cooperate? With what cooperative advantages? and How to grow and differentiate itself over time? ”. These questions must be constantly asked and reinvented or when it is necessary to change, because there is no cooperative advantage that lasts over time. Thus, each time the strategy resulting from the answer to these questions is defined, it must be clear, simple and understandable for all staff.
To best answer the questions, the strategy must be established based on the proposition value of the strategic design to the customer and the unit cost of providing the customer experience. Regarding the first, it consists of the set of experiences of consuming the product or service in comparison with the price paid by the customer. It is the quality and the price, it is the experience that the customer must pay. In relation to the second, the proportion of the total costs of the company's activities over the number of products or services that is produced each year is measured.
This new tool results in three types of strategic mindsets. The first is called the constricting mentality, which refers to the mentalities of corporate leaders to sacrifice something important, for something better. The second, on the contrary, is a strategy of quality features and low price, in other words, a cheap and ordinary product. The third mentality refers to monopolistic aspects, characterized by poor customer service and a high price to pay. And the last one, the most indicated, is the double overcoming mentality, it consists of delivering a higher value at a lower cost than the average.
Once the strategic mindset is defined, you should become familiar with the classic Michael Porter strategies: general leadership in costs, differentiation and focus or high segmentation (Porter, 1982). Thus, the opposition mindset is similar to the difference strategy or cost leadership. The monopoly mentality is referred to the strategy of operations. Once the strategy has been chosen, the cooperative advantages must be chosen, which for this, the following steps must be followed: be a customer, represent the customer experience, identify frustrations, focus on impossible frustrations, imagine the unimaginable and implement with double overcoming situations. And finally, to grow and differentiate itself over time, the value proposition created must go through 8 stages.This new value proposition must create new markets, customers and experiences, a totally new proposition is created from its essence. Also, assets and resources such as trademarks and patents. The interaction with competitors and complements is affected by the new value proposition, and they will react in a favorable or unfavorable way for the company. The value chain of the value proposition is similar to other companies, or it is truly innovative and difficult for competitors to imitate.The value chain of the value proposition is similar to other companies, or it is truly innovative and difficult for competitors to imitate.The value chain of the value proposition is similar to other companies, or it is truly innovative and difficult for competitors to imitate.
Likewise, the economies of scale and scope of the proposal provide a possibility of reducing the unit cost of production while the volume of production increases. That is why the possibility of growth of the value proposition must be imagined. Regarding products and services, the value proposition must be an innovative, attractive and captivating product. And finally, on the interaction with regulators and pressure groups, the proposal will create a platform for cooperative relations between the two.
Once the strategic design for the organization has been determined, it must be discerned by a type of leadership that knows how to direct and carry out said design. This leadership has five characteristics: Completeness, which consists of the ability to think about joining exclusive things, such as price and quality and cost and quality. Tolerance means the art of managing frustrations to coexist well with different cultures. Coherence refers to what is thought, said and done. Generosity is the quality of being generous as a leader to train people on the team. Patience helps you have a common language and handle frustrations.
In order for the leader to implement the proposed strategic design of organizations, a change program must be implemented. Currently according to Morosini (2014) two thirds of the strategic designs of organizations implemented fail. To implement change, you must analyze how different leaders think about change, when to change strategically, and when to implement the change program.
On mindsets, there are three that leaders think about. The first refers to the Change as a transaction, in which I receive something of what I give. This is implemented by a transactional leader with his followers or employees when he offers, for example, a compensation or remuneration in the increase of sales. This change is a transactional exchange with a sense of extrinsic motivation. Transformational change refers to a transformation very different from exchange, due to changing shape or leaving one thing for another. This is where the essence and identity of the company changes, generated by a transformational leader. This is stated by Cummings, TG & Worley CG (2005) defining organizational transformation as:
Sometimes organizational transformation is done by anticipating radical changes in the environment or technology. In addition, these changes are often accompanied by important innovations in business strategy, which in turn require modifying the corporate culture, internal processes and structures in order to support the new orientation (p. 479).
Another type of change is the so-called "overturn", in which the essence remains, reinvents itself. This is where the change program implies identifying the essence of the company, through the leader. This leader will never change the essence. And finally the conservative exchange rate, where everything changes so as not to change anything. Here the reality of change is not accepted, tradition is maintained.
Thus knowing the type of change that should be taken, you must consider when to make the change. Well, there are three phases: anticipatory, reactive and crisis, depending on time and performance. From the first, the company grows a lot, there are few competitors, the technologies are new, it is always growing. Of the second, the product is already mature, there are many competitors that threaten leadership and with innovative products, sales grow less, everything is mechanized, among others. And the last one, the crisis, the competitor has won, it is a leader, there is already a presence of a technology. Of these phases, the best time to change is in the anticipatory phase because it guarantees to always have a high performance and avoid the emergence of new competitors.
Finally, leadership in the strategic design of organizations is complemented by social and corporate responsibility. The objective of corporate social responsibility means assuming the consequences of the actions or impacts generated by the company. It involves those involved such as employees, customers, suppliers, society, the environment, among others.
In this way, successful organizations have had the knowledge of establishing a strong strategic design of organizations based on transformational leadership, a suitable and timely organizational structure for each change, well-established competitive advantages, innovative strategies designed for each opportunity, management of the quality change and innovation and competent personnel in all business activities.
References
- Cummings, TG & Worley CG (2005). Organizational Transformation. In Organizational Development and Change (pp. 479 - 523). Mexico DF: Cengage Learning EditoresPorter, M. (1982). Competitive strategy: Techniques for analyzing industries and competitors (24th ed.). Mexico DF: Editorial Company ContinentalMorosini, P.. (2014, June, 13). Introduction to the Course. Recovered from https://www.youtube.com/watch?v=xDmWXasOftk Morosini, P.. (2014, June, 13). Imagining the Future II - Part 1. Retrieved from https://www.youtube.com/watch?v=ckLwqmt7jr4&list=PLGE47OxIb19hNXE2oGhwN I2jM5eu5IiNT Morosini, P.. (2014, June, 13). Imagining the Future II - Part 2. Retrieved from https://www.youtube.com/watch?v=3vqnQrErPKg&list=PLGE47OxIb19hNXE2oGhwNI2jM5eu5IiNT & index = 2
