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

1. Organization Alignment
(An Effective Innovative Model For SMEs)
Nitin Sethi
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2. Ultimately, there may be no long-term sustainable advantage
except the ability to organize and manage.
~ Galbraith and Lawler (1993)
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3. Contents
I. Key Challenges
II. Lack of Organizational Alignment
III. Importance of Organizational Alignment
IV. Case Studies
V. What Next?
VI. WaterHealth Way
VII. Alignment Map
I. Circle of Means
II. Circle of Ends
III. Circle of Life
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4. Key Challenges
Although the below given challenges are not mutually exclusive and collectively
exhaustive, 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
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5. Lack of Organizational Alignment
Though most of us agree that strategic planning is no rocket science but studies have
shown that up to nine out of ten strategic plans fail1
Findings Reasons
1
Most
60 % of organizations don‟t link discussions
strategy to budgeting end at strategic
planning
2
75 % don‟t link employee incentives
to strategy
3
Lack of
86 % of business leaders spend less Organizational
than one hour per month discussing Alignment
strategy
Planning and
Execution
4 Lacks synergy
leadership not
being part of
with Strategic
95 % of workers don‟t understand Plan
Organizational
System
their organization‟s strategy
1Source: Fortune Magazine
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6. Importance of Organization Alignment
Importance of Organizational Alignment can be summarized through 3 Es i.e. What it is
essential 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
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7. Case Studies – I. Britannia Industries
Background
This case study highlights the problem faced by Britannia during business diversification due to lack
of „Organizational Alignment‟
Organization Goal
To emerge as a successful food company that provides high quality and tasty yet health foods and
beverages.
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.
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8. Case Studies – II. HCL Technologies
Background
This case study highlights the problem faced by HCL Technologies due to increase in
competition, reducing margins and high attrition.
Organization Goal
To turnaround and bring change in the Organization in order to ensue sustenance and growth
Brief 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
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9. What next?
To ensure seamless organizational alignment, strategy must be complemented with an
alignment process - “The Alignment Map”. Following are the check points for “The
Alignment Map”
1
•The corporate office defines strategic guidelines to shape strategies at lower
Enterprise value proposition levels of the organization
2
Board and shareholder •The Corporation‟s board of director‟s reviews, approves, and monitors strategic
alignment plan
3
Corporate office to corporate •The strategic plan is translated into corporate policies that will be administered
support unit by support unit
4
Corporate office to business
units •The corporate priorities are cascaded into business unit strategies
5
Business units to support •The strategic initiatives of the business units are incorporated in the strategies
units of the functional support units
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10. The WaterHealth Way
At WaterHealth India we have created and implemented “The Alignment Map” that
ensures seamless alignment between Organization‟s objectives and initiatives with
Values, Vision and Mission. Through the Alignment Map, we try to achieve synergy
between scarce means and elusive ends.
“The Alignment Map
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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”
Strategic
Tasks + Projects Initiatives
AOP
Operational
Initiatives
Dynamic
Initiatives
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12. Alignment Map: Circle of Ends
Generally known as the Values
budgeting process, this
loop lays out hard and Vision
measurable metrics for Feedback
performance for the entire Mission
organization.
Annual
Strategic Appraisal
Objective
“Circle of Ends”
Strategic
Initiatives KRA
Operational Budget
Initiatives
Dynamic
Initiatives
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13. Alignment Map: Circle of Life
Values
Vision
Annual Review
Feedback
Mission
Quarterly
Review Annual
Strategic
Appraisal
Objective
“Circle of Means” “Circle of Ends”
Tasks + Projects Strategic
Initiatives
KRA
AOP
Operational Budget
Initiatives
Dynamic
Initiatives
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14. Benefits
Implementing 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
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15. Thank You
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16. Strategic Objectives
Back
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17. Strategic Initiatives
Back
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18. Operational Initiatives
Back
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19. Personal Effectiveness (PE) Map
Back
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20. Special Project Brief
Back
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21. KRA
Back
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