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Making Strategic Tradeoffs with Clarity

  • Concerns across organizations often revolve around tradeoffs like underutilization of embedded specialists, cost of decentralization, and standardizing work methods.
  • Tradeoffs are necessary when optimizing for one strength means compromising on another, emphasizing the importance of defining organizational goals first.
  • Creating Agile Organizations (CAO) offers tools like Value Chain & Value Stream Mapping, The Star Model, and Strategic Focus to identify capabilities, align elements, and make strategic decisions based on desired outcomes.
  • Organizations should prioritize clarity on strategy and capabilities to make informed tradeoffs that align with their goals, ensuring design choices support their overarching strategy.

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