The Need for Organisational Resilience - Chapter 2

Linear Strategy

Adaptive Strategy

Environment

In organisations adapting a linear strategy, top managers define long terms goals

Adopting an adaptive strategy takes the external environment (such

and assess how organisational capabilities support these long-term goals. If

as competitors) into consideration. An adaptive strategy implies an

necessary, organisational capabilities and resources need to be expanded or

‘outward looking’ organisation. Top managers constantly assess the

enhanced to ensure goal achievement. Top managers are ‘inward looking’; the

external environment, in order to align their internal capabilities and

external environment is seen as a ‘nuisance’ that does not necessarily affect their

resources with environmental opportunities and risks.

planning.

Means and Ends

The focus of managerial attention is on ‘ends’, the long-term orientation of an

Pursuing an adaptive strategy, the emphasis is predominantly on the

organisation, over a period of five years or more. Long-term goals may include

‘means’ of an organisation to adapt to a changing environment; to

specific improvements in the organisation's competitive position, technology

allow organisational capabilities and resources to match a changing

leadership, profitability, return on investment, employee relations and productivity,

external environment. Such means may include intangible assets such

and corporate image.

as business process know-how, customer and business relationships,

reputations, organisational culture and leadership values.

Responsiveness

The forward looking nature of a linear strategy assumes that environmental

The organisation is not insulated from its environment. Proactive and

conditions will remain stable and thus predictable, or that any change in the

reactive responsiveness to the environment is paramount and

environment will not significantly constrain organisational capabilities and

engages not only with major but also with subtle changes and trends.

resources in accomplishing the set long-term goals.

Table 2.1: Key Differences between Centralisation and Decentralisation

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