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Organization Alignment(An Effective Innovative Model For SMEs)                                               Nitin Sethi  ...
Ultimately, there may be no long-term sustainable advantageexcept the ability to organize and manage.                     ...
ContentsI.    Key ChallengesII.   Lack of Organizational AlignmentIII. Importance of Organizational AlignmentIV. Case Stud...
Key ChallengesAlthough the below given challenges are not mutually exclusive and collectivelyexhaustive, the real challeng...
Lack of Organizational AlignmentThough most of us agree that strategic planning is no rocket science but studies haveshown...
Importance of Organization AlignmentImportance of Organizational Alignment can be summarized through 3 Es i.e. What it ise...
Case Studies – I. Britannia IndustriesBackgroundThis case study highlights the problem faced by Britannia during business ...
Case Studies – II. HCL TechnologiesBackgroundThis case study highlights the problem faced by HCL Technologies due to incre...
What next?To ensure seamless organizational alignment, strategy must be complemented with analignment process - “The Align...
The WaterHealth WayAt WaterHealth India we have created and implemented “The Alignment Map” thatensures seamless alignment...
Alignment Map: Circle of Means                                     Values                                                 ...
Alignment Map: Circle of EndsGenerally known as the         Valuesbudgeting process, thisloop lays out hard and         Vi...
Alignment Map: Circle of Life                                      Values                                      Vision     ...
BenefitsImplementing Alignment Map has helped WaterHealth in following ways:  1     30 % increase in EBIDTA Margin YoY in ...
Thank You            15
Strategic Objectives                            Back                       16
Strategic Initiatives                             Back                        17
Operational Initiatives                               Back                          18
Personal Effectiveness (PE) Map                                       Back                                  19
Special Project Brief                             Back                        20
KRA           Back      21
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Organization Alignment

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Something that We implemented in my Previous Organization. It was very effective and went down really well through out the Organzation.

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Organization Alignment

  1. 1. Organization Alignment(An Effective Innovative Model For SMEs) Nitin Sethi 1
  2. 2. Ultimately, there may be no long-term sustainable advantageexcept the ability to organize and manage. ~ Galbraith and Lawler (1993) 2
  3. 3. ContentsI. Key ChallengesII. Lack of Organizational AlignmentIII. Importance of Organizational AlignmentIV. Case StudiesV. What Next?VI. WaterHealth WayVII. Alignment Map I. Circle of Means II. Circle of Ends III. Circle of Life 3
  4. 4. Key ChallengesAlthough the below given challenges are not mutually exclusive and collectivelyexhaustive, the real challenge is to overcome “lack of organizational alignment”. Initiative overload Lack of discipline, accountability and follow-up Lack of coordination and teamwork Conflict/differences between key people Department, function or process bottleneck Transmission loss due to ineffective communication processes Inability to manage cultural change as Organization grows 4
  5. 5. Lack of Organizational AlignmentThough most of us agree that strategic planning is no rocket science but studies haveshown that up to nine out of ten strategic plans fail1 Findings Reasons1 Most 60 % of organizations don‟t link discussions strategy to budgeting end at strategic planning2 75 % don‟t link employee incentives to strategy3 Lack of 86 % of business leaders spend less Organizational than one hour per month discussing Alignment strategy Planning and Execution4 Lacks synergy leadership not being part of with Strategic 95 % of workers don‟t understand Plan Organizational System their organization‟s strategy1Source: Fortune Magazine 5
  6. 6. Importance of Organization AlignmentImportance of Organizational Alignment can be summarized through 3 Es i.e. What it isessential for, what it ensures and what it eases. Easing: •Organizational performance Ensuring: •Harmony between strategy, culture and processes •It helps management to ask the right questions •It changes and improves the way information flows Essential for: between the board, executive •Clarity of direction leadership, senior management and rest •Agreement on company‟s of the organization values, vision , mission (VVM) •Creating unique market position •Achieving strategic and operational goals 6
  7. 7. Case Studies – I. Britannia IndustriesBackgroundThis case study highlights the problem faced by Britannia during business diversification due to lackof „Organizational Alignment‟Organization GoalTo emerge as a successful food company that provides high quality and tasty yet health foods andbeverages.Brief Story Company was market leader in biscuit category Company was facing high competition and increase in raw material cost which was pushing down margins Decided to increase its product offerings by entering allied food categories This change was not articulated down the level efficiently as the strategic and operational objectives laid down for the same were not cascaded properly There was misalignment between different business units, functional units and trade partners. Lost focus on core market as well due to lack of clarity Due to this misalignment the company faced declined market share in biscuit category from 58% in 2001 to 38% in 2007, although 90% revenue were still coming from core business i.e. Biscuits category. 7
  8. 8. Case Studies – II. HCL TechnologiesBackgroundThis case study highlights the problem faced by HCL Technologies due to increase incompetition, reducing margins and high attrition.Organization GoalTo turnaround and bring change in the Organization in order to ensue sustenance and growthBrief Story Once considered a pioneer ten years ahead of the competition, in 2005 HCL‟s turnover was $ 565 million and growing at 35% YoY Faced challenges due to increase in competition, reduction in margins and high attrition. Rolled out radical new strategy “Employee First, Customer Second” (EFCS). Strategic objective was to create unique employee organization, drive an invert organization structure, create transparency and accountability and encourage a value driven culture Identified and addressed following issues – HCL Technologies was in service business and it was first level employees not managers who played the critical role in creating value. – Top down management model which exalted those with hierarchical power rather than those who create customer value. Key changes made – Empowering front line employees – Create reward system that recognizes customer centric behaviour – Removal of extra hierarchical level in the organization 8
  9. 9. What next?To ensure seamless organizational alignment, strategy must be complemented with analignment process - “The Alignment Map”. Following are the check points for “TheAlignment Map”1 •The corporate office defines strategic guidelines to shape strategies at lower Enterprise value proposition levels of the organization2 Board and shareholder •The Corporation‟s board of director‟s reviews, approves, and monitors strategic alignment plan3 Corporate office to corporate •The strategic plan is translated into corporate policies that will be administered support unit by support unit4 Corporate office to business units •The corporate priorities are cascaded into business unit strategies5 Business units to support •The strategic initiatives of the business units are incorporated in the strategies units of the functional support units 9
  10. 10. The WaterHealth WayAt WaterHealth India we have created and implemented “The Alignment Map” thatensures seamless alignment between Organization‟s objectives and initiatives withValues, Vision and Mission. Through the Alignment Map, we try to achieve synergybetween scarce means and elusive ends. “The Alignment Map 10
  11. 11. Alignment Map: Circle of Means Values The operating part of the Strategic plan is developed Vision at various levels leading Annual Review finally as a feedback to the Mission Strategic Planning process.Quarterly Strategic Review Objective “Circle of Means” StrategicTasks + Projects Initiatives AOP Operational Initiatives Dynamic Initiatives 11
  12. 12. Alignment Map: Circle of EndsGenerally known as the Valuesbudgeting process, thisloop lays out hard and Visionmeasurable metrics for Feedbackperformance for the entire Missionorganization. Annual Strategic Appraisal Objective “Circle of Ends” Strategic Initiatives KRA Operational Budget Initiatives Dynamic Initiatives 12
  13. 13. Alignment Map: Circle of Life Values Vision Annual Review Feedback MissionQuarterly Review Annual Strategic Appraisal Objective “Circle of Means” “Circle of Ends” Tasks + Projects Strategic Initiatives KRA AOP Operational Budget Initiatives Dynamic Initiatives 13
  14. 14. BenefitsImplementing Alignment Map has helped WaterHealth in following ways: 1 30 % increase in EBIDTA Margin YoY in 1st Half 2 Increase in Employee Satisfaction score(ESAT) 3 Inculcating a meritocratic culture within the Organization 4 No transmission loss due to seamless alignment across the levels 14
  15. 15. Thank You 15
  16. 16. Strategic Objectives Back 16
  17. 17. Strategic Initiatives Back 17
  18. 18. Operational Initiatives Back 18
  19. 19. Personal Effectiveness (PE) Map Back 19
  20. 20. Special Project Brief Back 20
  21. 21. KRA Back 21

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