Optimal Organizational Structures for Strategic Execution PPT

This PPT slide, part of the 24-slide SMO Series: Strategic Management Office (SMO) Implementation PowerPoint presentation, presents 2 primary organizational models deemed most effective for executing strategy within a company. The first model, "Direct to CEO," establishes a solo relationship where the Strategic Management Office (SMO) reports directly to the CEO. This structure allows the SMO to set agendas for key meetings, ensuring direct influence over strategic discussions and decisions. The SMO's close relationship with Balanced Scorecard (BSC) managers in various business units enhances coordination for strategic initiatives.

The second model, "Direct to CFO, with direct access to CEO," features a dual relationship. Here, the SMO reports to the CFO while maintaining direct access to the CEO. This arrangement facilitates regular interaction with both the CEO and CFO, allowing the SMO to play a pivotal role in strategic planning and execution. The slide highlights that this model supports a collaborative environment, where the SMO can effectively align financial and operational strategies.

In contrast, the "Direct Minus One Level" model is depicted as less effective. In this scenario, the SMO is positioned below the CFO or COO, which can hinder its ability to gain the necessary respect and attention from senior executives. The slide indicates that this structure complicates the SMO's role in prioritizing strategic management initiatives.

Lastly, the "CEO Minus Two Levels" model is also shown as ineffective. Here, the SMO is relegated to a mere performance measurement system, lacking a central role in strategic discussions. Overall, the slide underscores the importance of direct reporting relationships for the SMO to influence and execute strategy effectively.

This slide is part of the SMO Series: Strategic Management Office (SMO) Implementation PowerPoint presentation.

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