"The greater the need for effectiveness"

"Need for efficiency/effectiveness as aspects of strategy. The need for efficiency or effectiveness follows closely the previous discussion of type of strategy. The two are highly correlated, but the efficiency/effectiveness issue is well kown and important and, accordingly, deserves separate mention.
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Strategies may focus on efficiency or effectiveness in a quest to gain competitive advantage. The greater the need for efficiency, the greater usually is the reliance on centralization of structure and the cost controls inherent in it. The greater the need for effectiveness, the more likely it is that an organization will opt for a decentralized structure.
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Cost-leadership strategies obviously need and rely on cost efficiencies, explaining again why centralized functional structures are critical for strategy execution and organizational success. When strategy focuses on effectiveness in serving different customers or geographical regions with a variety of products and services, emphasis will logically be on decentralization, with different divisional-type structures based on customer, geography, or product line."

Recordar "When it comes to strategy, however, efficiency and productivity are very different."

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