S05E06 Alfred Chandler and the Principle of Structure Follows Strategy
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In this lecture, we turn to Alfred Chandler, the historian of business who transformed our understanding of how organizations grow and adapt. Through his detailed studies of companies like DuPont and General Motors, Chandler introduced the principle that “structure follows strategy.” We explore how firms developed the multidivisional form to support diversification, why alignment between strategic direction and organizational design is essential, and how failures like Kodak illustrate the dangers of misalignment. This episode shows how Chandler’s insights remain deeply relevant in the digital age, reminding us that ambitious strategies must be supported by structures capable of carrying them out, and that the choices organizations make about structure also reflect their values and responsibilities.
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