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Strategic alignment in decentralized organizations – The case of Svenska Handelsbanken

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  • Cäker, Mikael
  • Siverbo, Sven

Abstract

Recent research emphasizes technocratic controls to support the self-management aspect of empowerment. Strategic alignment is ascribed to socio-ideological controls. However, the indirect nature of socio-ideological controls pose a question regarding monitoring of strategic alignment in organizations with empowerment-oriented controls. We adopt a holistic approach in exploring the role of and interaction between organization structure, socio-ideological control and technocratic control through a qualitative case study. Our study confirms the essential role of socio-ideological controls in ensuring strategic alignment, but highlights the role of trust in experienced-based advice-giving from superiors to subordinates. Technocratic controls contain information that provide visibility of local actions and are used in hierarchical communication. The interrelationship between socio-ideological and technocratic controls is dependent on the organization structure design through time and proximity. A high capacity to communicate is thereby established, enabling monitoring without impairing empowerment.

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  • Cäker, Mikael & Siverbo, Sven, 2014. "Strategic alignment in decentralized organizations – The case of Svenska Handelsbanken," Scandinavian Journal of Management, Elsevier, vol. 30(2), pages 149-162.
    • Handle: RePEc:eee:scaman:v:30:y:2014:i:2:p:149-162
    DOI: 10.1016/j.scaman.2013.10.005
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    1. Cäker, Mikael & Siverbo, Sven, 2018. "Effects of performance measurement system inconsistency on managers’ role clarity and well-being," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 256-266.

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