Creating the Aligned Organization ContXt Corp 419.931.3000 www.contxtcorp.com
Think of a high performing organization. One of the measures of an organization s success, regardless of industry type, is the ability to focus and execute on its most pressing initiatives. In the acclaimed book, Execution: The Discipline of Getting Things Done, Larry Bossidy and Ram Charan found that execution of strategy far outweighed the emphasis leadership places on how great the strategy was to begin with. A well-crafted strategy has value. However, the ability to execute against the strategy begins with the most critical of all steps, aligning the entire organization with the strategic agenda and leadership s vision. After investing critical time and effort performing the job of the executive team - designing the organization s strategy, business model, product roadmap, technical capabilities, transformation agenda and culture there still seems to be a struggle with how to get everyone on the same page. Even years after Bossidy and Charan s work, real alignment between leadership and the rest of the organization seems elusive. In recent work completed by the author of Thirteeners, Dan Prosser details that an astonishing 87% of organizations never fully realize execution of their strategy. Prosser states, Make sure that your core business and everyone in it is achieving its absolute maximum current potential right now. This requires that your employees (all your employees) be Engaged they must have a critical line-of-sight to your vision and know both how they contribute to the achievement of the mission as well as how they are doing in that effort. Without it they (and you) will squander the opportunities available to you. So what are high achieving organizations doing differently to increase their chances to effectively execute against their stated strategy and objectives? Why do most organizations continue to suffer with meager results in execution? Where does it all break down? The breakdown of strategic alignment usually begins when the leadership team believes the work is done once the strategy is done, then turns to employees to begin doing the work of execution. In 2012, author of Bullseye! Hitting Your Strategic Targets Through High-Impact Measurement, William Schiemann leveraged results from survey company Metrus Group and found that only 14% of employees understood their company s strategy and direction. If these researchers are correct, can we make a correlation between the gap in execution, the gap in understanding of the strategy by employees and what leadership is asking them to focus on? Alignment begins to break down when the people who are charged with the implementation of the strategy don t fully understand the context required to execute it. Research conducted by strategy firm McKinsey found that when people understand the vision, strategy, goals and direction that leadership has mapped out, they create earnings margin twice that of their industry median. Organizations that make an investment and place priority in getting everyone on the same page begin benefiting not only from strengthened execution of the strategy, but also begin to experience increased engagement that translates into stronger customer satisfaction, higher quality and enhanced performance. Many organizations leveraging traditional approaches to communicating the strategic message invariably run into challenges connecting it with the employee base. Often the message from the top becomes mutated as it cascades through layers of 2
management. At times employees can t see the connection between the strategy and what they do. Furthermore, they haven t been given the context for the strategy so they can make decisions that are aligned to it. People need to understand the Industry Big Picture, the value proposition the organization brings to the market, how the organization makes money, how the core processes support execution and connect it all together in the strategy. Industry Big Picture Where we can start. First, don t delegate the work of alignment to one individual, team or organization. Alignment is the leadership team s job. When everyone understands the market, the business, the competition, their organization at a deep and meaningful level, then collective alignment begins to take shape. Begin with measurement. Using of the Enterprise Line-of-Sight tool we can create a baseline assessment of strategic alignment across the organization. Follow up measurement allows you to track progress towards alignment when engaging the organization. Strategy Organizational Alignment Customer Value Proposition Development of a consistent picture, where everyone can collectively understand the strategy and organization in the same way is essential to alignment. Core Process Financial Model At times leaders run into alignment challenges by creating overly complicated messaging around the strategy that fails to resonate with even the brightest employees. Making the strategy tangible, applicable and approachable to everyone creates a higher potential for successful execution. Few people left to their own can figure out an approach to make a business strategy memorable and actionoriented for everyone across the organization. How can leaders close the gap? How can leadership take months of work creating the organization s strategy and get everyone on the same page? How can leadership get their people seeing the future in the same way? How do we achieve alignment? Through the design and implementation of a Strategic Alignment Map everyone in the organization is engaged in a visual approach and dialogue that sets the background and context. Creating the case for where the organization is going generates conversation about the strategy and how teams and individuals fit in. 3
STRATEGIC ALIGNMENT Experience has proven that when everyone has a collective understanding of specific key components of the business and organization, everyone views the future in the same way. We create a highly impactful understanding of the strategy through exploring these essential areas: The Industry Looking at the makeup of the competitive environment, trends that are shaping the competitive landscape and how these forces impact the organization. Financial Model Engaging everyone in how the business operates, the revenue model, profitability, near and long -term financial performance. Value Proposition Reviewing how the organization differentiates itself and decisions that impact choices the customer makes. Customer Experience Understanding the realities customers experience both positive and negative. Key Processes Grounding in the way the business operates to deliver value to the customer and how this could be improved. The Strategy Bringing the business story together so that everyone has collective understanding of why, what and how the organization will achieve leadership s defined direction. CULTURAL ALIGNMENT In addition to alignment in the business, it is essential to get everyone on the same page with the culture of the organization. Culture is the way in which the organization will successfully execute the strategy and drive results. We have learned that creating alignment in the strategy is essential to successful execution. However, developing alignment of the culture mobilizes everyone with a collective way to support the strategy. In addition to understanding the strategy, it is equally important to explore areas essential to organizational alignment: Culture Alignment Create a picture of what the culture looks like. Certainly the organization s values, but more importantly, how values translate into organizational norms and behaviors. Creating an intentional culture is critical to execution of the strategy. Behavior Change Core to culture alignment is ensuring everyone has a collective understanding of what it looks like to work together. It is essential to define the kind of work environment you are creating. Leader and Manager Effectiveness Beyond the skills of leading and managing others, leaders and managers must be examples of the culture and behaviors that support the strategy. The Leadership Test. The successful execution of the stated vision, day-to-day mission, strategy and culture rests on the ability of leadership to drive alignment. The leadership team has been charged by the board not only to create an effective business strategy but also to gain collective rational and emotional engagement from every employee. Arguably, this essential responsibility is the greatest challenge executives face. 4
WE ARE DEEPLY EXPERIENCED IN PARTNERING TO CREATE CLARITY, SHARED UNDERSTANDING, FOCUS, AND ULTIMATELY ALIGNMENT OF THE STRATEGY AND CULTURE ACROSS THE ORGANIZATION. We accomplish this though: DEFINE The design of interactive workshops to develop the strategy, customer value proposition, customer experience, new processes and culture. ALIGN Our Strategy Alignment Map approach creates collective alignment. It is highly visual and interactive. People within your organization will begin engaging in deeply impactful conversations about the business. They will benefit from understanding the big picture, customer value proposition, core processes and grounding in the strategy. Collective alignment begins to take root when everyone in the organization is on the same page. Our approach is different and is proven to create understanding of the future in a way that resonates with everyone in the organization. SUSTAIN Development of organization specific modules to build the knowledge and skills required to sustain strategic alignment and drive new behaviors. We have successfully engaged with organizations across various industries, large and small, to create the alignment needed to achieve successful execution of their strategy. Find us at www.contxtcorp.com 5