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Executive Team AlignmentThe Power of Instrumentation

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Topic # 1Topic # 1

What is Strategic What is Strategic Alignment?Alignment?

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A Seamless Culture A Seamless Culture of Shared Purposeof Shared Purpose

The Goal of Strategic The Goal of Strategic AlignmentAlignment

“Well aligned companies outperform their competitors on every major financial measure.”

Harvard Business School Research

““Alignment is the essence of management”Alignment is the essence of management”Fred Smith, FedExFred Smith, FedEx

The RealityThe Reality

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53% of people don’t feel their company strategy will lead to success … Booz & Company

80% of employees would leave if given the opportunity … The Economist

70% of the time the problem is not bad strategy but bad execution … Fortune

90% of companies implement their strategy ineffectively … Kaplan and Norton

73% of workers don’t believe they are supporting company strategy

… Duncan Worldwide

46% of CMOs say their CIO does not understand marketing objectives

… Accenture and the CMO Council

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Contributions to Company ValueContributions to Company ValueIntangibles assets are Intangibles assets are responsible for responsible for 70%70% of value of value

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Ernst and Young, 2009

LeadershipLeadershipCultureCultureInnovationInnovationEngagementEngagementAlignmentAlignment

TangibleTangibleAssetsAssets

IntangibleIntangibleAssetsAssets

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Topic # 2Topic # 2

How to recognize poor How to recognize poor alignmentalignment

Common Symptoms of Poor AlignmentCommon Symptoms of Poor Alignment

• Inability to articulate strategy• Lack of accountability• Information hoarding• Poor teamwork• Little upward information flow• Fragmentation and duplication• Inappropriate or misguided initiative• Excessive focus on short-term results• Team goals trump corporate strategy • Institutional apologists• Lack of Innovation• ‘Quit but still showing up’ syndrome• Indeterminate ‘referred’ pain

• High turnover and low morale

Looking for Alignment - Looking for Alignment - The key questionsThe key questions

1.1.What is our strategy?What is our strategy?2.2.What do you do?What do you do?3.3.How does what How does what youyou do support the strategy? do support the strategy?

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Topic # 3Topic # 3

Can alignment be Can alignment be quantified?quantified?

The Axes of AlignmentThe 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

Value of Alignment Analysis•Develops long- and short-term action plans•Pinpoints areas requiring management attention•Launches improvement initiatives•Identifies skill gaps•Isolates best and worst practices•Distributes effective leadership•Aligns 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”

SurveyQuestions

Q1

Q2

Q3

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Alignment AnalyticsAlignment AnalyticsSummary WheelSummary Wheel

Red – alert (1-55)Yellow – opportunity (56-79)Green – best practice (80-100)

Team 2Team 1 Team 3

Comparative Alignment Dashboard

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Alignment AnalyticsAlignment AnalyticsSummary WheelSummary Wheel

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Alignment AnalyticsAlignment AnalyticsCorrelation analysisCorrelation analysis

The Self-Aligning Company

• Invisible hand of culture• Adjustments made quickly at all levels• Organization senses needs and changes• Distributed leadership• Disciplined enough to continually monitor

the internal and external worlds• Do the right things right and concentrate

on key metrics only

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AlignComm AlignComm

•Strategic alignment consulting and surveys•Workshops and seminars•Executive coaching•Behavioral Alignment diagnostics for managers•Return on Alignment ® planning•Messaging frameworks and collateral•Alliance Management

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pete@aligncomm.com

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