The Power of Organizational Alignment

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


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


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


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


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


MetricsStrategy&

Customer

1 2


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


Begin HereBegin Here

1

3

Key Processes

•Identify critical customer requirements

•Define & map processes

•Determine measures for key processes

•Measure, monitor results & recommend improvements


Metrics

Key Processes

Strategy&

Customer

DeployMetrics

2



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


Metrics

Key Processes

Review &

Respond

Strategy&

Customer

DeployMetrics

2



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


Metrics

Key Processes

Review &

Respond

Strategy&

Customer

DeployMetrics

2



1

3

4

5

Review the company strategy and key customers and adjust as needed


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


The Power of Organizational Alignment

Business

Transcript of The Power of Organizational Alignment