Why is it important for an organization to have alignment between its strategy and organizational structure?

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Not aligning organizational structure with strategy would make no sense.

A strategy is a long-term plan for how a business wants to grow or improve. Usually a document that has been vetted by multiple department heads, it provides each of those department heads and the totality of the work force with a direction for the future. If the company’s organizational structure is not suited to the execution of the strategy, then failure is guaranteed, or, at least, highly probable.

Depending upon the type of organization/business/agency, it is presumably organized in a way that maximizes the probability of success. The smaller the organization, obviously, the simpler the structure. A small organization, like a small company, can easily structure itself accordingly. It might be as simple as delegating responsibilities to each individual so that the group effort is all in the same direction with the same schedule. Conversely, the larger the organization, and the more divisions established within it, the more complicated the task. That is why chief executive officers exist. They sit atop the organizational pyramid and ensure that the structure exists to execute the strategy, that each division is aligned accordingly, and that each department head understands his or her responsibilities. Sensitive to the interests of stockholders or clients and cautious about operating in a competitive environment, CEOs make certain that strategic goals are met; to accomplish that, the entirety of the organization must be structured consistent with the established and clearly articulated strategy.

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