Mapping strategic decision-making in cross-functional contexts
Mapping strategic decision-making in cross-functional contexts
Crittenden V.L., Woodside A.G.Journal of Business Research, March 2006, Vol 59 No 3, Start page: 360, No of pages: 5
Purpose – To analyze decision-making behavior in cross-functional contexts. Design/methodology/approach – States that decision rules are needed to prevent areas of cross-functional interaction becoming major sources of conflict. Focuses on mapping strategic decisions requiring interactions between marketing and production at a relatively large Colombian agricultural firm, referred to as Floral Farms. Identifies three major decision categories: managing diversity, managing conformity and managing dependability. Outlines the scope of Floral Farms’ business, with farms growing fresh-cut flowers in Colombia and a marketing organization located in Miami, Florida. Presents schematic diagrams illustrating Floral Farms’ cognitive model for learning, strategic learning process and the interactions related to the company’s first annual planning meeting. Findings – Highlights the communication difficulties that emerged from this event. States that marketing expressed frustration that the production people could not increase output to meet sales projections and production pointed out that “what’s planted is planted”. Describes the decision support model built as a consequence of this failed attempt to bring marketing and production together, in which both production data and marketing data were incorporated in a framework linking the production schedule and product availability schedule to expected revenue. Practical implications – Demonstrates that functionally anchored decision criteria less to poorer results than cross-functional decision criteria. Adds that developing and operationalizing the model led to positive interfunctional discussions. Originality/value – Shows how one Latin American firm became more market-oriented.ISSN: 0148-2963Reference: 35AH139
Keywords: Cross-functional integration, Decision making, Strategic management
