Executive Team Alignment The Power of Instrumentation 1

Executive Team Alignment The Power of Instrumentation 1

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Topic # 1 What is Strategic Alignment? 4

The Goal of Strategic Alignment A Seamless Culture of Shared Purpose “Well aligned companies outperform their competitors on every major financial measure. ” Harvard Business School Research “Alignment is the essence of management” Fred Smith, Fed. Ex 5

The Reality 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

Contributions to Company Value Intangibles assets are responsible for 70% of value Intangible Assets Leadership Culture Innovation Engagement Alignment Tangible Assets Ernst and Young, 2009

Topic # 2 How to recognize poor alignment 8

Common Symptoms of Poor Alignment • • • • High turnover and low morale 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

Looking for Alignment - The key questions 1. 2. 3. What is our strategy? What do you do? How does what you do support the strategy?

Topic # 3 Can alignment be quantified? 11

The Axes of Alignment 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 Strategy Process Customer People 12 Vertical Alignment • The rapid and efficient deployment of business strategy throughout the organization • Employee engagement and strategic buyin 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 13 Strategy Process Customer People

Alignment Analytics Summary Wheel Overall Alignment Index “The Main Thing” Category “Critical Success Factors” Dependent Factor “Key Indicators” Q 1 Q 2 Red – alert (1 -55) Yellow – opportunity (56 -79) Green – best practice (80 -100) Q 3 Survey Questions 14

Alignment Analytics Summary Wheel Comparative Alignment Dashboard Team 1 15 Team 2 Team 3

Alignment Analytics Correlation analysis 16

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 • • • 17

Align. Comm • • 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 pete@aligncomm. com 18

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