Strategic IQ: Creating Smarter Corporations

2.3

FORMAL ARCHITECTURE – NAVIGATING THE ARCHITECTURE LABYRINTH

Introduction

The formal architecture of the firm consists of many interrelated elements which put the assets to work in a coordinated way.¹ We focus on a number that are critical in the strategic change process. The organization chart defines who is responsible for the work, mapping out roles, responsibilities and reporting relationships (the three Rs). Business processes describe how the work should be done. Because of the critical contribution of people to strategic success, we single out human asset development processes for special attention. Equally, measurement and reward systems play a critical role. Finally, since they hold everything else together, we highlight communication ...