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Value Of Alignment Overview


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An introductory slide presentation I use to introduce the topic of strategic alignment and the tools available to measure and manage it.

An introductory slide presentation I use to introduce the topic of strategic alignment and the tools available to measure and manage it.

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  • 1. The Power of Alignment 1
  • 2. Strategic Alignment is theseamless organizationalculture of shared purpose “The #1 purpose of strategy is alignment” Michael Porter 2
  • 3. The Reality• 53% of people don’t feel their company strategy will lead to success … Booz, 2011• 80% of employees would leave if given the opportunity … The Economist, August 2011• In 70% of the cases the real problem is not bad strategy, it is bad execution ... Fortune• 73% of workers dont believe they are supporting organizational strategies The Duncan Group• Once strategy is in place, only one in ten companies implement it effectively Kaplan and Norton• Only 15% of CEOs believe strategic changes are well implemented … Grolman Group• Good tactics can save a bad strategy, but bad tactics will destroy even the best strategy ... George S. Patton• Attaining alignment is a never-ending process of identifying and doggedly correcting misalignments that push a company away from its core ideology or impede progress Collins and Porras 3
  • 4. Where the Value LiesIntangibles will impact:• Customer retention• Employee satisfaction• Productivity• Profitability Leadership Culture Innovation Employee Commitment Goodwill Relative contributions to market value Ernst and Young, 2009
  • 5. Well Aligned CompaniesMore aligned• Nimble• Responsive to change• Innovative• Proactive Not aligned “Well aligned companies outperform their competitors on every major financial measure.” Harvard Business School Research 5
  • 6. Engagement and the Bottom LineThere is a 50% spread in performance betweenengaged and non-engaged teams.Towers WatsonThe EPS growth rate of organizations withengagement scores in the top quartile was 2.6 x thatof organizations with below-average scores.GallupEngaged people are consistently more productive,profitable, safer, healthier, and 87% less likely to leavetheir employer.Corporate Leadership Council 6
  • 7. Engaged teams are not enough,they must also be aligned to thegoals of the entire organization.Sustained excellence emerges when all the key elements of abusiness are connected to one other and to the Customer. George Labovitz ~ The Power of Alignment 7
  • 8. 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 • ‘Quit but still showing up’ syndrome • Indeterminate ‘referred’ pain 8
  • 9. Looking for AlignmentSome 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? 9
  • 10. The Main ThingWhy you are in business and how will you succeed Strategy The Main Thing Process Customer People “The main thing is to keep the main thing the main thing” Jim Barksdale, the Barksdale Group 10
  • 11. 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 Leadership Vertical AlignmentProcess Customer Culture • 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 Through Leadership and Culture 11
  • 12. Steps to Align an Organization Survey Analyze Diagnose Adjust 12
  • 13. Value of Alignment Analysis• Development of long- and Strategy short-term action plans• Pinpoint areas requiring Process Customer management attention• Launch improvement initiatives• Identify skill gaps People• Isolate best and worst practices• Distribute effective leadership• Align people, processes and strategies with market opportunities 13
  • 14. 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” 14 Andy Greig, Division President, Bechtel Corp
  • 15. Powerful Alignment Analytics Predictive Matrices of Radar Diagrams Correlated Dependencies And many, many more 15
  • 16. Powerful Behavioral Analytics
  • 17. 17