Five Actions that can be used to enhance or promote organizational alignment

1. The Power of
Organizational Alignment
By
Norma Simons
Performance Innovation LLC

2. Without Alignment
• It is hard to get everyone
moving in the same
direction
• There is a strong silo
culture that gives way to
sub-optimization
• There are often conflicts
across departmental
boundaries
• The organization is often
resistant to change
© 2012 Performance Innovation LLC

3. Types of Alignment
Strategy
Processes CCuussttoommeerrss
PPeeooppllee
The Challenge –
maintaining both
© 2012 Performance Innovation LLC

4. An Organization with
Vision but Poor Alignment
Gallop Poll of 11..77 wwoorrkkeerrss ffoouunndd tthhaatt 6677%% ccoouulldd
nnoott aannsswweerr ““SSttrroonnggllyy aaggrreeee”” wwiitthh tthhee ssttaatteemmeenntt
““II kknnooww wwhhaatt iiss eexxppeecctteedd ooff mmee aatt wwoorrkk””
““GGrreeaatt PPeerrffoorrmmaannccee iiss 11%% vviissiioonn aanndd
9999%% AAlliiggnnmmeenntt””
JJiimm CCoolllliinnss,, aauutthhoorr ooff GGoooodd ttoo GGrreeaatt
© 2012 Performance Innovation LLC

5. Reasons for Poor Alignment
Poor Understanding of the Strategy
Belief that a Strong Focus on “Quality” will
Automatically yield Financial Performance
Different Languages within the Company
Poorly Selected Metrics
Inability to Understand the Process of
Alignment
© 2012 Performance Innovation LLC

6. Importance of Alignment
Waste Reduction
 Strong Focus on What is Important
Ease of Communication across the Organization
Ability to Respond Quickly to changes in the
external and internal environment
 Improve Efficiency and Effectiveness in all
Processes
© 2012 Performance Innovation LLC

7. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
Strategy
&
Customer
BBeeggiinn HHeerree
Strategy & Customer
•What market does
my company serve?
•What are the unique
features of that
market?
•What products do
we intend to offer
•Who are the key
customers?
•What are their
requirements and
why?
1
(c) 2012 Performance Innovation
LLC
© 2012 Performance Innovation LLC

8. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
1 2
Metrics
Strategy
&
Customer
BBeeggiinn HHeerree
Metrics
•Do measures relate
to the strategy?
•Do the metrics drive
the financial
performance?
•Is the measure
simple to define &
communicate?
•Will the measure
provide a fast
response?
•Will the measure
register small
© 2012 Performance Innovation LLC changes?

9. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
Metrics
Key
Processes
Strategy
&
Customer
2
BBeeggiinn HHeerree
1
3
Key Processes
•Identify critical
customer
requirements
•Define & map
processes
•Determine
measures for key
processes
•Measure, monitor
results & recommend
improvements
© 2012 Performance Innovation LLC

10. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
Metrics
Key
Processes
Strategy
&
Customer
Deploy
Metrics
2
BBeeggiinn HHeerree
1
4
3
Deploy Metrics
•Review performance
metrics selected
•Select metrics for
each sub-process
•Select for each
functional group
•Ensure everyone is
close to a measure
that relates to the job
being performed
© 2012 Performance Innovation LLC

11. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
Metrics
Key
Processes
Strategy
Review
&
Respond
&
Customer
Deploy
Metrics
2
BBeeggiinn HHeerree
1
3
4
5
Review & Respond
•Establish a review
system at each level
•Ensure that people
are held
accountable for
previous actions
•Identify corrective
actions to address
unfavorable
performance
© 2012 Performance Innovation LLC

12. Alignment RReeqquuiirreess aa CClloossee--LLoooopp SSyysstteemm
Metrics
Key
Processes
Strategy
Review
&
Respond
&
Customer
Deploy
Metrics
2
BBeeggiinn HHeerree
1
3
4
Review the
company strategy
and key customers
and adjust as
needed
5
© 2012 Performance Innovation LLC

13. Remember
Alignment
•is not static
•is continuous
•needs a close-loop system to be sustained
© 2012 Performance Innovation LLC

14. For More information
 Download the White Paper “ A Template for Organizational
Alignment”
 Contact the author
Norma Simons
Performance Innovation LLC
norma@performance-innovation.com
www.performance-innovation.com
248 529 6701
© 2012 Performance Innovation LLC