CS Organizational Design & Strategy Execution 3

Question 1

Which of the following best describes a 'resource allocation' decision in the context of strategy execution?

Accepted Answer

Determining which business units receive investment priority based on strategic goals

Answer

Resource allocation in strategy execution involves directing capital, talent, and time toward the business units, initiatives, and capabilities that best advance the firm's strategic priorities.

Question 2

The concept of 'strategic fit' in organizational design refers to:

Accepted Answer

Ensuring the organizational design supports and reinforces the strategy

Answer

Strategic fit means that the organization's structure, processes, incentives, and culture are configured to enable and reinforce the chosen strategy rather than working against it.

Question 3

A company's strategy calls for radical innovation but its performance management system rewards only short-term cost reduction. This is an example of:

Accepted Answer

Incentive misalignment

Answer

When reward systems reinforce behaviors contrary to the intended strategy — like punishing risk-taking when innovation is required — execution fails due to incentive misalignment.

Question 4

In strategy execution, 'governance mechanisms' refer to:

Accepted Answer

Systems and processes that ensure decisions align with strategic intent

Answer

Governance mechanisms in strategy execution are the policies, review processes, and decision rights designed to keep organizational behavior aligned with the strategic plan.

Question 5

Which approach to strategy execution focuses on creating a 'burning platform' to overcome organizational inertia?

Accepted Answer

Urgency-driven transformation

Answer

Urgency-driven transformation deliberately highlights a crisis or compelling threat to overcome complacency and motivate employees to embrace rapid, fundamental change.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS Organizational Design & Strategy Execution 3