SAMPLE ANALYSIS OF DYNACORP CASE
The strategic design lens assumes organizations are deliberate, goal-achieving entities (Ancona, Kochan, Scully, Van Maanen, & Westney, 2005: M-2, 10). In this view, managers can achieve organizational goals by understanding the fundamentals of design and fitting design to strategy, as well as to the larger organizational environment (Ancona et al., 2005: M-2, 12). In this paper, I discuss the five major elements of strategy – environmental fit, strategic intent, strategic grouping, strategic linking, and alignment – and identify two specific elements as causes of the problems Dynacorp is experiencing with its redesign. These elements are strategic linking and alignment.
Fit with the Environment
In the
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Greystone seemed optimistic: “You see, we feel that by targeting our investments toward growth of sales in specific industries and developing solutions to fit their needs, we’ll rebuild our market share and increase margins,” (Dynacorp Case, 2005: M-2, 100).
Strategic Linking
Ancona et al. describe strategic linking as both formal and informal processes and posi-tions that would integrate units and subunits which are interdependent in tasks, (2005: M-2, 19). The text identifies a wide array of linking mechanisms, including formal reporting structures, liaison roles, permanent or temporary cross-unit groups, integrator roles, information technology systems, and planning processes.
Strategic linking at Dynacorp was to be accomplished, in the first instance, by linking development, manufacturing, and marketing within each Business Unit through a change in the formal reporting structure. Carl Greystone expressed his conviction that a “tremendous amount of progress” has been made since these changes were instituted and that his personnel are “thinking about the business in new terms…” Even Greystone, however, was forced to admit that his group had been “consistently behind plan in both revenue and profit” for the past year and a half and that the “Business Unit presidents have expressed some frustration with the performance of his group.” Martha Pauley, a Branch Manager in Greystone’s division who supervised six teams that “handle
The design of an organization is a “formal, guided process for integrating the people, information, and technology of an organization” (Glickman et al., 2007). A good organizational design increases the likelihood that an organization will succeed; that its’ values will be realized and its mission will be attained. An organization begins with a strategy or a purpose, is followed by its philosophy or values, then identifies the mission and finally evaluates the environment and its’ strengths, weaknesses, opportunities, and threats to the organization (Kelly & Crawford, 2008).
If I am on the Dynacorp task force, my first choice for an alternative design would be front /back structure of strategic design. This structure divides the organization into two parts such that the back end products which include engineering, manufacturing and the logistics and the front end is faced by the marketing and sales division. As Dynacorp is spread across the US and as well as the world, this front/back
Problems inside Dynacorp: When Dynacorp has changed its structure, there are problems of linkage and alignment in the light of Strategic Design Lens. According to the new structure, Research and Advanced Development Group and Business Units (BUs) are
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Miles and Snow have produced a typology of business level strategies. Their typology involves four strategic types: defenders, prospectors, analyzers and reactors. Using Miles and Snow’s strategy typology that consist of; defender, analyzer, reactor, and prospector, I will categorize Dollar Tree in its strategy typology. In the first strategy defenders try to carve a niche in the market where stability can be found. As in the prospector strategy, companies are constantly producing innovations. I understand through Miles and Snow typology of business level strategies that defenders, analyzers, and prospectors are forms of organizations. Therefore, if an alignment is reached between a chosen strategy, and organizational structure mentioned above Dollar Tree has the potential to be a
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Our course pack touches on the concept of “structure follow strategy” and then is quoted saying, “U.S. Corporations evolved over
As Dynacorp outgrew its functional structure it began to experience common disadvantages of such organizational types. These disadvantages include unresponsiveness to changes in the market and to customers. Restructuring to Front/Back revealed a structural disadvantage that is identical to the functional structure: poor integration between market needs and technology development. An additional disadvantage incurred due to the restructure was inadequate integration and synergy between the front and back ends.
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Accordingly, they were tasked with creating a new strategy based on strategic intent and guided by strategic architecture. The following text discusses and analyzes the strategy of the past and those needed for the future while identifying single biggest problem which will impact the organization’s ability to effectively realize their strategic intent.