Post on 11-Jul-2015
The Power of Organizational AlignmentBy Norma SimonsPerformance Innovation LLC
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
Types of AlignmentStrategy
PeoplePeople
Processes CustomersCustomers
The Challenge –maintaining both
© 2012 Performance Innovation LLC
An Organization with Vision but Poor Alignment
Gallop Poll of 1.7 workers found that Gallop Poll of 1.7 workers found that 67%67% could could not answer “Strongly agree” with the statement not answer “Strongly agree” with the statement “I know what is expected of me at work”“I know what is expected of me at work”
““Great Performance is 1% vision and Great Performance is 1% vision and 99% Alignment”99% Alignment”
Jim Collins, author of Good to GreatJim Collins, author of Good to Great
© 2012 Performance Innovation LLC
Reasons for Poor AlignmentPoor Understanding of the StrategyBelief that a Strong Focus on “Quality” will Automatically yield Financial Performance
Different Languages within the CompanyPoorly Selected Metrics Inability to Understand the Process of Alignment
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Importance of AlignmentWaste ReductionStrong Focus on What is ImportantEase of Communication across the OrganizationAbility to Respond Quickly to changes in the external and internal environment
Improve Efficiency and Effectiveness in all Processes
© 2012 Performance Innovation LLC
Strategy&
Customer
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin HereStrategy & 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
MetricsStrategy&
Customer
1 2
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin HereMetrics
•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 changes? © 2012 Performance Innovation LLC
Metrics
Key Processes
Strategy&
Customer
2
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin Here
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
Metrics
Key Processes
Strategy&
Customer
DeployMetrics
2
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin Here
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
Metrics
Key Processes
Review &
Respond
Strategy&
Customer
DeployMetrics
2
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin Here
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
Metrics
Key Processes
Review &
Respond
Strategy&
Customer
DeployMetrics
2
Alignment Requires a Close-Loop SystemAlignment Requires a Close-Loop System
Begin HereBegin Here
1
3
4
5
Review the company strategy and key customers and adjust as needed
© 2012 Performance Innovation LLC
Remember
Alignment
•is not static
•is continuous
•needs a close-loop system to be sustained © 2012 Performance Innovation LLC
For More information Download the White Paper “ A Template for Organizational Alignment”
Contact the authorNorma SimonsPerformance Innovation LLCnorma@performance-innovation.comwww.performance-innovation.com248 529 6701
© 2012 Performance Innovation LLC