Strategic Coherence of Company – Research Results

Abstract:

Starting point of this article is an overview of various concepts of organizational adjustment and coherence. Then an author`s proposition of strategic coherence is present. This framework allows measuring dynamic balance between vertical and horizontal adjustment  of organization. Vertical adjustment is a relation between the strategy and the elements of the business model. It is measured by three aspects: 1) the cascading of goals, 2) feedback on state  of matching elements of the business model according to strategy and 3) control of the financial result and strategy implementation. Horizontal adjustment refers to matching together  of business model`s components. It is also measured by three aspects: 1) creating value, 2) capturing value ​​and 3) creating a synergy effect. The main goal of this paper is to present research results of strategic coherence of 400 Polish medium and large companies. Survey cover period 2015-2017. The surveyed companies achieved similar results in terms of strategic coherence dimensions, as the vertical adjustment is 6.47, and the horizontal is 6.29 (on a scale of 1-10), and thus achieves the third of five levels of strategic coherence. Additionally, nearly 3/4 of surveyed enterprises implement activities oriented to strategic coherence in a "planned and systematized" manner, which indicates a dominance of attitudes based on a rather rigid and centralized method of strategy implementation. This paper is intended for researchers and managers dealing with operationalization of strategic coherence, especially in dynamic perspective, including matching implementation  of strategic goals with adjustment of business model`s components.

 

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