Strategy Management Organization Size

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Strategy Management Organization Size

I wonder what the size of a strategy management organization should be in a company of 300,000 people?

  Paul Maguire
Business Consultant, United States
 

Strategy Management - Large Organization

Interesting question. My recommendation would be to start out small regardless of the organization size. By that I mean 1-3 resources. Focus on corporate strategy first (or one division if the Office of Strategy Management is at the division level). Focus, review and learn before you cascade down the organization (which will likely require more resources to support).

  Warren Miller, CPA, CFA
Strategy Consultant, United States
 

Re: Strategy Management - Large Organization

@Paul Maguire: As one who has studied and practiced strategic management for over 35 years, I wonder why there needs to be an "Office of Strategy Management" in the first place. Having something like that strikes me as needlessly creating a source of mischief because the person(s) who work there are going to have too-too much time on their hands because... such 'Office' shouldn't exist.
That's because strategy--whether it's at the corporate or the business level--is the purview of senior managers. They don't need a cadre of overpaid, underworked bureaucrats duplicating (or misinterpreting or even opposing) the efforts of senior executives to get formulate and implement a business strategy (for a single-unit organization) or a corporate strategy (for a diversified enterprise).
That said, I don't doubt that there are businesses out there with a 'Department of Strategy Management' (or something similar-sounding). But those are likely to occur either in monopolies (in the U.S., investor-owned public utilities are one excample) or in organizations that are imposing sub-normal returns on investors by creating needless overhead expenses (such as a 'strategy management organization'). So, in my less-than-humble opinion, this is one bad, bad idea.

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Summary
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Strategy Management Organization Size
Setting up a Planning Department
Creating an Office of Strategy Management
🔥In Well-Managed Enterprises, an 'Office of Strategy Management' is Totally Unnecessary
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