CORPORATE STRATEGY FOCUS (OVERALL BANK STRATEGY)

- The focus of the corporate strategy is on the entire organization.

- It determines the path to create value both for shareholders and
clients/customers.

BUSINESS LEVEL STRATEGY FOCUS (RETAIL BANKING, WEALTH

MANAGEMENT, COMMERCIAL BANKING AND CAPITAL MARKETS STRATEGY)

- determines the path forward for a particular business and

customers/clients it is focusing on.
- Such aspects as profitability, sustainability, product/service offering,
pricing, customer/client segmentation are focal topics of a business
strategy.

FUNCTIONAL STRATEGY FOCUS (HR, IT, DIRECT CHANNEL AND INNOVATION

STRATEGY)

- deals with a path forward for a particular organization function (e.g.

HR, Contact Centre, Digital, Technology/IT) in the context of the entire
organization (i.e. how this function adds value to the rest of the
organization).
- Such as aspects as services offered, internal pricing, enabling
capabilities, quality of services are in the focus of a functional strategy

10 KEY CORPORATE STRATEGY COMPONENTS

1. A set of clearly defined objectives which are quantified, anchored in

financials (e.g. enterprise value, profitability, growth) and linked to a
timeline.
2. A clearly defined product or/and service offering that clarifies four
dimensions:
a) What products/services we offer (including clearly defined value-
added)
b) Who is our customer/client?
c) What markets we serve (e.g. geography)?
d) At what price do we offer our product/service?
3. A clear understanding of the market/industry and competitive landscape.
4. Core capabilities that the organization has AND does not have (e.g.
innovation, cost advantage, etc.)
5. Execution approach defining how objectives will be achieved (e.g. through
organic growth, acquisitions, etc.)
6. Key elements of Performance management to track the execution journey
(e.g. KPIs)
7. Agreed risk management approach (i.e. identified risks and mitigation
strategies)
8. Clear change management and leadership approach to drive changes
necessary to succeed.
9. A clearly defined strategic roadmap laying out the path forward (i.e.
milestones, activities, responsibilities, associated resources, etc.)
10. We believe that there is another essential component of corporate
strategy that links all these aspects together – this is a set of scenarios
that consider potential strategic developments and represent feasible
versions of future developments. A well-defined strategy considers
different scenarios to ensure that the company is prepared for
unexpected.

ORGANIZATIONAL STRUCTURE

- a system that outlines how certain activities are directed in order to

achieve the goals of an organization. These activities can include rules,
roles, and responsibilities.
- determines how information flows between levels within the
company.
- having an organizational structure in place allows companies to
remain efficient and focused.
- in a centralized structure, decisions flow from the top down
- in a decentralized structure, decision-making power is distributed
among various levels of the organization.

UNDERSTANDING ORGANIZATIONAL STRUCTURE

- A successful organizational structure defines each employee's job and

how it fits within the overall system. Put simply, the organizational
structure lays out who does what so the company can meet its
objectives.
- provides a company with a visual representation of how it is shaped
and how it can best move forward in achieving its goals.
- Not having a formal structure in place may prove difficult for certain
organizations. For instance, employees may have difficulty knowing to
whom they should report. That can lead to uncertainty as to who is
responsible for what in the organization.

CENTRALIZED ORGANIZATION
 - In a centralized organizational system, there are very clear
responsibilities for each role, with subordinate roles defaulting to the
guidance of their superiors.
- organizations have been structured with centralized leadership and a
defined chain of command.
- The military is an organization famous for its highly centralized
structure, with a long and specific hierarchy of superiors and
subordinates.

DECENTRALIZED ORGANIZATION

- There has been a rise in decentralized organizations, as is the case

with many technology startups.
- allows companies to remain fast, agile, and adaptable, with almost
every employee receiving a high level of personal agency.
TYPES OF ORGANIZATIONAL STRUCTURES

1.FUNCTIONAL STRUCTURE
- first and most common structure
- also referred to as a bureaucratic organizational structure and
breaks up a company based on the specialization of its
workforce.
- small-to-medium-sized businesses implement a functional
structure.
- a functional org structure starts with positions with the
highest levels of responsibility at the top and goes down from
there.

PROS:
 Allows employees to focus on their role
 Encourages specialization
 Help teams and departments feel self-determined
 Is easily scalable in any sized company

CONS:
 Can create silos within an organization
 Hampers interdepartmental communication
 Obscures processes and strategies for different markets or
products in a company

2.DIVISIONAL OR MULTIDIVISIONAL STRUCTURE

- second type is common among large companies with many
business units.
 - a company that uses this method structures its leadership team
based on the products, projects, or subsidiaries they operate.
- a company that uses this method structures its leadership team
based on the products, projects, or subsidiaries they operate.
- a company’s divisions have control over their own resources,
essentially operating like their own company within the larger
organization.
- This structure works well for large companies as it empowers
the various divisions to make decisions without everyone
having to report to just a few executives.

 MARKET BASED DIVISIONAL ORG STRUCTURE

- Divisions are separated by market, industry, or customer
type. A large consumer goods company, like Target or
Walmart, might separate its durable goods (clothing,
electronics, furniture, etc.) from its food or logistics
divisions.

 PRODUCT BASED
- Divisions are separated by product line. For example, a
tech company might have a division dedicated to its cloud
offerings, while the rest of the divisions focus on the
different software offerings—e.g., Adobe and its creative
suite of Illustrator, Photoshop, InDesign, etc.

 GEOGRAPHIC
- Divisions are separated by region, territories, or districts,
offering more effective localization and logistics.
Companies might establish satellite offices across the
country or the globe in order to stay close to their
customers.

PROS:
 Helps large companies stay flexible
 Allows for a quicker response to industry changes or customer
needs
 Promotes independence, autonomy, and a customized approach

CONS:
 Can easily lead to duplicate resources
 Can mean muddled or insufficient communication between the
headquarters and its divisions
 Can result in a company competing with itself
3.TEAM BASED
- Similar to divisional or functional structures, team-based
organizations segregate into close-knit teams of employees that
serve particular goals and functions, but where each team is a
unit that contains both leaders and workers.
- A team organizational structure is meant to disrupt the
traditional hierarchy, focusing more on problem-solving,
cooperation, and giving employees more control.

PROS:
 Increases productivity, performance, and transparency by
breaking down silo mentality
 Promotes a growth mindset
 Changes the traditional career models by getting people to move
laterally
 Values experience rather than seniority
 Requires minimal management
 Fits well with agile companies with Scrum or tiger teams

CONS:
 Goes against many companies’ natural inclination of a purely
hierarchical structure
 Might make promotional paths less clear for employees

4.FLAT STRUCTURE
- also known as a horizontal structure, is relatively newer, and is
used among many startups.
- As the name alludes, it flattens the hierarchy and chain of
command and gives its employees a lot of autonomy.
- Companies that use this type of structure have a high speed of
implementation.
- A horizontal or flat organizational structure fits companies
with few levels between upper management and staff-level
employees.
- Many start-up businesses use a horizontal org structure
before they grow large enough to build out different
departments, but some organizations maintain this structure
since it encourages less supervision and more involvement
from all employees.

PROS:
 Gives employees more responsibility
 Fosters more open communication
 Improves coordination and speed of implementing new ideas
CONS:
 Can create confusion since employees do not have a clear
supervisor to report to
 Can produce employees with more generalized skills and
knowledge
 Can be difficult to maintain once the company grows beyond
start-up status

5.MATRIX STRUCTURE
- the most confusing and the least used.
- This structure matrixes employees across different superiors,
divisions, or departments.
- An employee working for a matrixed company, for example,
may have duties in both sales and customer service.
- looks like a grid, and it shows cross-functional teams that
form for special projects. For example, an engineer may
regularly belong to the engineering department (led by an
engineering director) but work on a temporary project (led by a
project manager).
- accounts for both of these roles and reporting relationships.

PROS:
 Allows supervisors to easily choose individuals by the needs of a
project
 Gives a more dynamic view of the organization
 Encourages employees to use their skills in various capacities
aside from their original roles

CONS:
 Presents a conflict between department managers and project
managers
 Can change more frequently than other organizational chart
types

6.CIRCULAR STRUCTURE
- are hierarchical, but they are said to be circular as it places
higher-level employees and managers at the center of the
organization with concentric rings expanding outward, which
contain lower-level employees and staff.
 - intended to encourage open communication and collaboration
among the different ranks.
- The pyramid-shaped organizational chart we referred to
earlier is known as a hierarchical org chart. It’s the most
common type of organizational structure—the chain of
command goes from the top (e.g., the CEO or manager) down
(e.g., entry- level and low-level employees), and each
employee has a supervisor.

PROS:
 Better defines levels of authority and responsibility
 Shows who each person reports to or who to talk to about
specific projects
 Motivates employees with clear career paths and chances for
promotion
 Gives each employee a specialty
 Creates camaraderie between employees within the same
department

CONS:
 Can slow down innovation or important changes due to
increased bureaucracy
 Can cause employees to act in interest of the department
instead of the company as a whole
 Can make lower-level employees feel like they have less
ownership and can’t express their ideas for the company

7.NETWORK STRUCTURE
- organizes contractors and third-party vendors to carry out
certain key functions.
- It features a relatively small headquarters with geographically-
dispersed satellite offices, along with key functions outsourced
to other firms and consultants.
- A network organizational structure makes sense of the spread
of resources. It can also describe an internal structure that
focuses more on open communication and relationships rather
than hierarchy.

PROS:
 Visualizes the complex web of onsite and offsite relationships in
companies
 Allows companies to be more flexible and agile
 Give more power to all employees to collaborate, take initiative,
and make decisions
  Helps employees and stakeholders understand workflows and
processes

CONS:
 Can quickly become overly complex when dealing with lots of
offsite processes
 Can make it more difficult for employees to know who has final
say

BENEFITS OF ORGANIZATIONAL STRUCTURE

- putting an organizational structure in place can be very beneficial to a

company.
- The structure not only defines a company's hierarchy but also allows
the firm to lay out the pay structure for its employees.
- The structure also makes operations more efficient and much more
effective. By separating employees and functions into different
departments, the company can perform different operations at once
seamlessly.
- In addition, a very clear organizational structure informs employees
on how best to get their jobs done.

KEY ELEMENTS OF ORGANIZATIONAL STRUCTURE

- include how certain activities are directed in order to achieve the

goals of an organization, such as rules, roles, responsibilities, and how
information flows between levels within the company.

ORGANIZATIONAL STRUCTURE CHART

- normally illustrated in some sort of chart or diagram like a pyramid,

where the most powerful members of the organization sit at the top,
while those with the least amount of power are at the bottom.