Yis - 040409

Contents
1 Alignment : A Source of Economic value
Corporate Strategy & Structure :
2 Historical Perspective
6 Cascading : The Process
3 Aligning Financial & Customer Strategies
7 Aligning Boards and Investors
Aligning internal process & Learning
4 & Growth Strategies
8 Aligning External partners
5 Aligning Support Functions
9 Managing the Alignment Process
Total Strategic Alignment
10

ALIGNMENT MATTERS
STRATEGY ORGANIZATION EMPLOYEE
MOBILIZATION GOVERNANCE
TRANSLATION ALIGNMENT MOTIVATION
Orchestrating Defining: Aligning all Providing: Integrating
change through parties with the strategy into:
•Strategy Maps •Education
executive strategy
•Balance •Communication •Planning
leadership Scorecards •Goal setting •Budgeting
•Corporate
•Targets •Incentive •Reporting
•Business units
•Initiatives compensation •Management
•Support units
•Training of staff Reviews
•External partners
•Boards
5 KEY MANAGEMENT PROCESS

Relationship between Managerial Excellence
& Level of Benefits
1 = “We are awful at this” 4 = “We are good at this”
2 = “We are not good at this” 5 = “ We are best practice at this”
3 = “We are okay at this”

ENTERPRISE DERIVED VALUE
Enterprise Customer
Value
Derived Derived
Creation
Value Value
Value Customer Enterprise
Creation Value Value
Proposition Proposition
Strategy

Customer Value Proposition
CUSTOMER SYSTEM
BEST PRODUCT
SOLUTIONS PLATFORM
TOTAL COST LEADER
Provide a
Offer Offer Provide a
customized
products & Products & platform that
mix of
services services that becomes the
products and
that are expand industry
services,
consistent, existing standard for
combined
timely, and performance offering
with know
low cost boundaries products and
how, to solve
services
customers’
problem

Enterprise Value Proposition
INTERNAL LEARNING
FINANCIAL CUSTOMER
PROCESS & GROWTH
What How do we
What are To reach our processes align our
shareholder financial must we intangible
expectations objectives, assets –
excel at to
for financial how do we satisfy our people,
performance create value customers system, and
? for our culture – to
and
customer ? shareholders improve the
? critical
processes?

Building the Enterprise Scorecard

Source of Enterprise Synergy

MANAGING ALIGNMENT AS A PROCESS
•The corporate office defines strategic guidelines to shape strategies at lower levels
1. Enterprise Value Proposition of the organization
•The corporation’s board of director reviews, approves, and monitor corporate
2. Board & Shareholder Alignment strategy
3. Corporate office to corporate •The corporate strategy is translated into those corporate policies that will be
support unit administered by corporate support units
4. Corporate office to business units •The corporate priorities are cascaded into business unit strategies
•The strategic priorities of the business units are incorporated in the strategies of
5. Business units to support units the functional support units
•The priorities of the customer value proposition are communicated to targeted
Business units to customers customers and reflected in specific customer feedback and measures
7. Business support unite to suppliers •The shared priorities for suppliers, outsourcers and alliance partners are reflected in
and other external partners business unit strategies
•The strategies of the local business support units reflect the priorities of the
8. Corporate support corporate support unit

Building Alignment into the Planning Process

CASE STUDY : SPORT-MAN INC.
Sport-Man Inc. Enterprise Scorecard

CASE STUDY : SPORT-MAN INC.
Corporate & SBU Alignment at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC.
Support Unit Alignment at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC.
The Alignment & Governance Process at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC.
Organization Alignment Map at Sport-Man Inc.