Post on 29-Nov-2014
description
The Power of Alignment
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Strategic Alignment is the
seamless organizational
culture of shared purpose
“The #1 purpose of strategy is alignment” Michael Porter
The Reality
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• 53% of people don’t feel their company strategy will lead to success … Booz, 2011
• 80% of employees would leave if given the opportunity … The Economist, August 2011
• In 70% of the cases the real problem is not bad strategy, it is bad execution ... Fortune
• 73% of workers don't believe they are supporting organizational strategies The Duncan Group
• Once strategy is in place, only one in ten companies implement it effectively Kaplan and Norton
• Only 15% of CEOs believe strategic changes are well implemented … Grolman Group
• Good tactics can save a bad strategy, but bad tactics will destroy even the best
strategy ... George S. Patton
• Attaining alignment is a never-ending process of identifying and doggedly correcting
misalignments that push a company away from its core ideology or impede progress Collins and Porras
Leadership
Culture
Innovation
Employee Commitment
Goodwill
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Where the Value Lies
Intangibles will impact: • Customer retention • Employee satisfaction • Productivity • Profitability
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Ernst and Young, 2009
Relative contributions to market value
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• Nimble • Responsive to change • Innovative • Proactive
Well Aligned Companies
“Well aligned companies outperform their
competitors on every major financial measure.” Harvard Business School Research
More aligned
Not
aligned
Engagement and the Bottom Line
There is a 50% spread in performance between engaged and non-engaged teams. Towers Watson
The EPS growth rate of organizations with engagement scores in the top quartile was 2.6 x that
of organizations with below-average scores. Gallup
Engaged people are consistently more productive, profitable, safer, healthier, and 87% less likely to leave their employer.
Corporate Leadership Council
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Sustained excellence emerges when all the key elements of a
business are connected to one other and to the Customer.
George Labovitz ~ The Power of Alignment
Engaged teams are not enough, they must also be aligned to the goals of the entire organization.
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Common Symptoms of Poor Alignment
• High turnover and low morale
• Passive-aggressive behavior
• Inability to articulate strategy
• Reduced accountability
• Sub-optimal teamwork
• Little upward information flow
• Fragmentation and duplication
• Inappropriate or misguided initiative
• Short-term focus on results
• Team goals trump corporate strategy
• Institutional apologists
• ‘Quit but still showing up’ syndrome
• Indeterminate ‘referred’ pain
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Looking for Alignment Some key questions
• Is the strategy clear and well-communicated,
and the priorities understood by all? • Is the leadership team aligned to deliver clear
and unambiguous direction? • Do the processes work efficiently, or are there
built-in conflicts? • Do I have a clear understanding of the needs, by
each demographic, of our people ? • What do customers say, and how does it impact
attrition, retention and overall profitability and sustainability?
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Strategy
Customer
People
Process
“The main thing is to keep the main
thing the main thing” Jim Barksdale, the Barksdale Group
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The
Main
Thing
The Main Thing Why you are in business and how will you succeed
The Axes of Alignment
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Process Customer
Strategy
People
Horizontal Alignment
• Eliminating boundaries between
company and customer
• Understanding, creating, delivering and
supporting customer needs
• Value creation throughout supply chain
• Clearly differentiated and synergistic
functional responsibilities
Vertical Alignment
• The rapid and efficient deployment of
business strategy throughout the
organization
• Employee engagement and strategic buy-
in through consistent communication
• Two-way flow of information through
empowered employees
• Enabled by measurable and actionable
metrics
Leadership
Culture
Through Leadership and Culture
Survey Analyze Diagnose Adjust
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Steps to Align an Organization
Value of Alignment Analysis
• Development of long- and short-term action plans
• Pinpoint areas requiring management attention
• Launch improvement initiatives • Identify skill gaps • Isolate best and worst practices • Distribute effective leadership • Align people, processes and
strategies with market opportunities
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Process Customer
Strategy
People
Overall Alignment Index “The Main Thing”
Category
“Critical Success Factors”
Dependent Factor
“Key Indicators”
Survey
Questions
Q1
Q2
Q3
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Powerful Alignment Analytics
“The best business tool in America” Andy Greig, Division President, Bechtel Corp
Radar Diagrams Predictive Matrices of
Correlated Dependencies
And many, many more 15
Powerful Alignment Analytics
Powerful Behavioral Analytics
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