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Structure follows strategy is a business principle that states that the divisions, departments, teams, processes and technology of an organization are designed to achieve a firm's strategy. This may seem obvious but in practice the opposite often happens. For example, a technology department may develop strategies for technology implementations simply because that's what technology departments do. Likewise, at the product level, if a company has a department that manufactures toothbrushes, that department will tend to develop strategies for better or more profitable toothbrushes, whether or not this aligns to corporate strategy. The principle of structure follows strategy is typically implemented with top-down strategy planning and governance of organizational structure, processes and technology.
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Type | | Definition | The principle that divisions, departments, teams, processes and technology of an organization are designed to achieve a firm's strategy and not the other way around. | Methods of Implementation | | Related Concepts | | Next: First Principles
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