Final answer:
When an organization decides on a new strategic direction, it initially faces the problem of coordination challenges among team members who may have different ideas on how to implement the new direction.
Step-by-step explanation:
When an organization that currently is managing a vast and well-balanced portfolio of projects decides on a new strategic direction, it will initially face the problem of coordination challenges. These challenges arise when group members generally agree on the goals but disagree about the specifics of the new strategic direction. Making decisions regarding the specifics creates transaction costs—the time, effort, and other resources required to make the decisions—and conformity costs—the differences between the value of the policy that each individual hoped for and the decision they each actually received.
For example, if an organization has been successfully managing multiple projects and decides to shift focus towards a new area, the existing teams may have conflicting ideas on how to implement the new direction. This can lead to challenges in aligning the efforts of the team members, as they may have different opinions on the best approach to take.
To overcome these coordination challenges, the organization needs to foster effective communication, encourage collaboration, and facilitate consensus-building among the team members. This could involve open discussions, setting clear goals and expectations, and finding common ground to move forward.