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The Power of Organizational Alignment
The document discusses the importance of organizational alignment. It notes that without alignment, it is difficult to get everyone moving in the same direction and there are often conflicts across departments. It identifies different types of alignment, including strategy, processes, customers, and people. A key challenge is maintaining alignment. Poor alignment can result in a lack of understanding of strategy, different languages within a company, and an inability to understand the alignment process. The document advocates for a closed-loop system to achieve and sustain alignment, with regular reviews and adjustments to strategy and key customers based on performance metrics and feedback from key processes.
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The Power of 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 PoorAlignment 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 aaCClloossee--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 aaCClloossee--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 aaCClloossee--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 aaCClloossee--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 aaCClloossee--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 aaCClloossee--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 •isnot 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