Strategic Alignment with AlignComm


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An overview of my thoughts on strategic alignment

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Strategic Alignment with AlignComm

  1. 1. Strategic Alignment Static Dynamic 1
  2. 2. The Goal of Strategic Alignment A Seamless Culture of Shared Purpose “Well aligned companies outperform their competitors on every major financial measure.” Harvard Business School Research “Alignment is the essence of management” Fred Smith, FedEx 2
  3. 3. The Reality 53% of people don’t feel their company strategy will lead to success … Booz & Company 80% of employees would leave if given the opportunity … The Economist 85% of CEOs believe strategic changes are not well implemented … Grolman Group 70% of the time the problem is not bad strategy but bad execution … Fortune 90% of companies implement their strategy ineffectively … Kaplan and Norton 73% of workers don’t believe they are supporting company strategy … Duncan Worldwide
  4. 4. Looking for Alignment - The key questions 1. What is our strategy? 2. What do you do? 3. How does what you do support the strategy?
  5. 5. Common Symptoms of Poor Alignment • High turnover and low morale • Passive-aggressive behavior • Inability to articulate strategy • Reduced accountability • Sub-optimal teamwork • Little upward information flow • Fragmentation and duplication • Inappropriate or misguided initiative • Short-term focus on results • Team goals trump corporate strategy • Institutional apologists • Lack of Innovation • ‘Quit but still showing up’ syndrome • Indeterminate ‘referred’ pain
  6. 6. The Cost of Employee TurnoverThe Seven Deadly Sins1. The job was not as expected (35% of workers that quit, quit within first year)2. Mismatch between job and person (60% of employees are not using talents)3. Feelings of devaluation, lack of recognition and insufficient resources4. Insufficient growth prospects (ranks lowest 67/67 of mgmt. competencies)5. Too little coaching and feedback (60% employees claim insufficient feedback)6. Lack of trust and confidence in senior leaders (esp. pay disparity)7. Stress and overwork (40% of US workers say their job is stressful) Source: The Center for Association Leadership 6
  7. 7. The Cost of Employee Turnover Voluntary 2010 attrition rate ~ 16% (US Bureau of Labor Statistics) Job Title Cost to rehire Executive 3 to 5 times annual salary Manager 1 to 3 times annual salary Hourly worker 50% of annual salary HBR and other sources Example: A 1000 person company will pay ~$10M to rehire from voluntary quits Question: How much would greater alignment have saved them? AlignComm Answer: Between 20% and 40% On average, employee turnover costs 9% of total revenue Mercer 7
  8. 8. Employee engagementa pre-requisite to correct alignment Engagement is the outcome of one’s personal • Satisfaction • Advocacy • Commitment • Initiative • Pride • Persistence • Loyalty • Energy • Sense of purpose
  9. 9. Engagement and the Bottom line A 50% spread in observed performance Companies with high levels of People engagement improved 19.2% Companies with low levels of People engagement declined 32.7% Towers Watson 9
  10. 10. Engagement and the Bottom lineWealth CreationThe EPS growth rate oforganizations with engagementscores in the top quartile was 2.6times greater than organizationswith below• average scores. Gallup (survey of 89 organizations) 10
  11. 11. Engagement and the Bottom lineSafetyThose with engagementscores in the bottomquartile averaged 62%more accidents. Gallup 11
  12. 12. Engagement and the Bottom line Productivity Engaged people are consistently more productive, profitable, safer, healthier, and 87% less likely to leave their employer. Corporate Leadership Council & Fleming & Apslund 12
  13. 13. But …Engaged teams are not enough.They must also be aligned to thegoals of the entire organization.Aligned teams  Know there’s a plan  Understand the plan  Agree with the plan  Buy into the plan  Energize the plan 13
  14. 14. Looking for AlignmentThe key questions • Is the strategy clear and well-communicated, and the priorities understood by all? • Is the leadership team aligned to deliver clear and unambiguous direction? • Do the processes work efficiently, or are there built-in conflicts? • Do I have a clear understanding of the needs, by each demographic, of our people ? • What do customers say, and how does it impact attrition, retention and overall profitability and sustainability? It is necessary to measure alignment quantitatively 14
  15. 15. The Axes of Alignment Horizontal Alignment • Eliminating boundaries between company and customer • Understanding, creating, delivering and Strategy supporting customer needs • Value creation throughout supply chain • Clearly differentiated and synergistic functional responsibilities Vertical AlignmentProcess Customer • The rapid and efficient deployment of business strategy throughout the organization • Employee engagement and strategic buy- in through consistent communication People • Two-way flow of information through empowered employees • Enabled by measurable and actionable metrics 15
  16. 16. Challenges of Horizontal Alignment• Customer requirements change• Customer voice hard to interpret• Customers speak in present tense• Few employees have direct interaction• Understanding the customer is rarely a collective responsibility Horizontally aligned companies create a shared reality with their customers 16
  17. 17. Big Five Questions on Customer Focus• What do our customers care about the most• What opportunities do we have to delight• How well are we satisfying them now• What are the “best-of-the-best” competitors doing• What do we do to make us “difficult to do business with?” Horizontally aligned companies use the voice of their customers as their beacon 17
  18. 18. The Self-Aligning Company• Invisible hand of culture• Adjustments made quickly at all levels• Organization senses needs and changes• Distributed leadership• Disciplined enough to continually monitor the internal and external worlds• Do the right things right and concentrate on key metrics only Key metrics must: • Be broad enough so everyone can understand their individual contribution • Unify the organization – its culture, systems and processes • Be future based and customer oriented 18
  19. 19. Steps to Align an Organization Survey Analyze Diagnose Adjust 19
  20. 20. Value of Alignment Analysis• Develops long- and Strategy short-term action plans• Pinpoints areas requiring Process Customer management attention• Launches improvement initiatives• Identifies skill gaps People• Isolates best and worst practices• Distributes effective leadership• Aligns people, processes and strategies with market opportunities 20
  21. 21. Why this assessment differs from traditionalemployee surveys? 1. Provides immediately tactical guidance 2. A local management tool for greater alignment to local customers 3. Comparative, quantifiable and prescriptive analytics 4. Readiness measured in the context of interdependent teams 5. Prioritized and actionable realignment recommendations 6. Identification of local barriers such as skill and coverage gaps 7. Quick, focused, digestible and of immediate value 8. Actionable within a few days of survey launch 9. Easily extensible for broader usage 10. Isolation of revenue risks and potential partner leverage
  22. 22. Powerful Alignment Analytics Overall Alignment Index “The Main Thing” Category“Critical Success Factors”Dependent Factor “Key Indicators” Q1 Q2 Q3 Survey Questions “The best business tool in America” 22 Andy Greig, Division President, Bechtel Corp
  23. 23. Powerful Alignment Analytics Comparative Alignment Dashboard Team 1 Team 2 Team 3 23
  24. 24. Powerful Alignment Analytics Predictive Matrices of Radar Diagrams Correlated Dependencies And many, many more 24
  25. 25. Management behaviour may also need to bealigned to the working situation. The AlignCommBehavioural Alignment Instrument gets to the rootcauses of misaligned managers. Personality Situation Behaviour Performance
  26. 26. Behavior Alignment Instrument Accurate Conjoint analysis, nongameable through evasion factors Powerful Powerful Identifies the 20 behaviors that drive 80% of performance Each job is different, so to be managed effectively requires aSituational specific and unique set of behaviors Validated Questionnaire has high validity of 0.992 and reliability Validated of 0.933 as reported by the London School of Economics
  27. 27. Three Primary Behavior Modalities Measured Vision, change, increasing Accelerating effectiveness, and driving things forward Consistency, efficiency, Sustaining implementation, attention to detail and maintaining quality Responsibility avoidance, Blocking conflict avoidance, or anger and annoyance.
  28. 28. Behavior AlignmentExample of aggregated data report 28
  29. 29. Return on Alignment The trademarked AlignComm methodology to aggregate, evaluate and prioritize remediation alternatives to determine which have the greatest impact on business results 29
  30. 30. AlignComm• Strategic planning support and guidance• Workshops and seminars• Alignment and engagement surveys• Executive coaching• Behavioral Alignment diagnostics for managers• Return on Alignment ® modeling for remediation prioritization• Messaging frameworks and collateral 30
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