CMC Strategic Planning & Organizational Development 2 — Questions and Answers
Question 1: In the context of organizational development, what does 'double-loop learning' refer to?
- Repeating training modules twice for retention
- Questioning and revising the underlying assumptions and norms that govern behavior (Correct answer)
- Running two parallel planning cycles simultaneously
- Documenting lessons learned at two levels of management
Correct answer: Questioning and revising the underlying assumptions and norms that govern behavior
Double-loop learning, coined by Argyris and Schön, involves challenging the governing values and assumptions behind actions, not just correcting errors within existing frameworks.
Question 2: A company's strategy map in the Balanced Scorecard framework typically shows cause-and-effect linkages across how many perspectives?
- Two
- Three
- Four (Correct answer)
- Five
Correct answer: Four
The classic Balanced Scorecard strategy map links four perspectives: Financial, Customer, Internal Business Processes, and Learning & Growth.
Question 3: Which strategic planning tool maps an organization's current capabilities against future requirements to identify gaps?
- BCG Growth-Share Matrix
- Capability gap analysis (Correct answer)
- Porter's Five Forces
- Ansoff Matrix
Correct answer: Capability gap analysis
Capability gap analysis compares existing organizational capabilities with those needed to execute the future strategy, revealing investment or development priorities.
Question 4: Kotter's 8-step change model places 'creating a guiding coalition' at which step?
- Step 1
- Step 2 (Correct answer)
- Step 3
- Step 4
Correct answer: Step 2
In Kotter's model, Step 1 is establishing urgency; Step 2 is forming a powerful guiding coalition of leaders who can champion the change.
Question 5: An organization pursuing a 'related diversification' strategy is best described as entering:
- Completely new industries with no connection to current business
- New markets that share resources, capabilities, or value chain activities with existing operations (Correct answer)
- Foreign markets in the same industry
- A joint venture with a direct competitor
Correct answer: New markets that share resources, capabilities, or value chain activities with existing operations
Related diversification leverages existing competencies, technologies, or distribution channels by expanding into adjacent businesses that share strategic fit.
Question 6: In scenario planning, what is the primary purpose of developing multiple distinct futures?
- To predict the most likely outcome with precision
- To reduce the number of strategic options available
- To stress-test strategy robustness against a range of plausible external environments (Correct answer)
- To satisfy regulatory requirements for contingency reporting
Correct answer: To stress-test strategy robustness against a range of plausible external environments
Scenario planning helps organizations develop strategies that remain viable across several plausible futures, improving resilience rather than optimizing for a single forecast.
Question 7: Which organizational design principle holds that the structure of an organization should follow from and support its strategic intent?
- Strategy follows structure
- Structure follows strategy (Correct answer)
- Culture eats strategy for breakfast
- Form follows function
Correct answer: Structure follows strategy
Alfred Chandler's landmark research established that organizational structure should be designed to facilitate the execution of the chosen strategy.
CMC Strategic Planning & Organizational Development 2
In the context of organizational development, what does 'double-loop learning' refer to?