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Strategy and Goals

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Strategic decisions are future‐oriented, concerned with long‐term direction (Chandler, 1962; Mintzberg, 1994; Roberts, 2004). Across sectors, a major task of organizational leadership is “the determination of long‐range goals and objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals” (Chandler, 1962, p. 13).

A variety of goals are embedded in strategy. In business firms, goals such as profitability, growth, and market share are relatively specific and easy to measure. Goals of educational or human services organizations are typically more diffuse: “producing educated men and women” or “improving individual well‐being.” This is another reason Harvard adopts a more decentralized, loosely integrated system of roles and relationships.

Historically, McDonald's had fewer, more quantifiable, and less controversial goals than those of Harvard. This aligned well with the centralized, top‐down McDonald's structure. But that structure has become more complex as the company's size and global reach have fostered levels of decentralization that allowed outlets in India to offer vegetarian cuisine and those in France to run ads attacking Americans and American beef (Arndt, 2007; Stires, 2002; Tagliabue, 1999).

Understanding linkages among goals, structure, and strategy requires a look beyond formal statements of purpose. Schools, for example, are often criticized if structure does not coincide with the official goal of scholastic achievement. But schools have other, less visible goals. One is character development, often espoused with little follow‐through. Another is the taboo goal of certification and selection, as schools channel students into tracks and sort them into careers. Still a third goal is custody and control—keeping kids off the streets, out from underfoot and temporarily away from the job market. When the Covid‐19 pandemic forced millions of students to stay home instead of going to school, the impact on families was often devastating. Finally, schools often herald honorific goals such as excellence. Strategy and goals shape structure, but the process is often complex and subtle (Dornbusch and Scott, 1975).

Reframing Organizations

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