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Organizational Alignment

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Most areas holding back a company’s growth rise from internal obstacles rather than external or competitive forces. This can encompass unreliable forecasting, ambiguous goals, lack of organizational and financial data or a lack of understanding between departments on how their work contributes to objectives.

In other words, how aligned an organization’s strategies, capabilities, systems and resources are to its Vision (or purposed).

If you haven’t thought much about organizational alignment, consider the impact of having every team and team member operating in harmony with your organization’s critical goals and objectives. The impact of a successfully aligned organization is multi-fold.

As finance and operations experts we know how important strategic vision is to drive business growth. Yet according to Harvard Business Review, companies on average deliver only 63 percent of the financial performance their strategies promise.

What separates a high-performing organization from the rest of the pack? Their disciplined execution of processes and performance to align with business goals. In other words, organizational alignment.

What is Organization Alignment?

Aligning an organization — its people, structure and processes — is the foundation for a healthy business.

When looking at the way an organization is aligned there are several operational areas that make up its infrastructure:

  • People reflect the experience, skills and knowledge required to perform their work. A company’s workforce is the biggest expense and largest asset
  • Structure refers to the formal and informal relationships, networks, and functional connections through which work occurs
  • Processes are the routines through which this work is performed, as well as how this valuable knowledge is retained organizationally
  • Culture is the values and attitudes that guide working behavior.

Benefits of organizational alignment

When teams are aligned, insight is more profound and things happen quicker. People know what to do, their actions flow from strategy and result in win/win decisions, and they feel better knowing their role has value.

In our experience, companies that have invested in alignment enjoy a level of nimbleness, company morale and efficiency that others can only dream of.

Studies show a dramatic increase in both financial performance and worker engagement when an organization effectively sets and closely ties employee goals to the company's overall strategy. Research  also found that employees in the weakest-performing companies did not clearly understand the connection between their individual efforts and the overall goals of their employers.

Conversely, lack of cross-functionality and alignment can lead to miscommunication, re-work, process inefficiencies and less engaged employees which result in lower customer satisfaction. It can also mean missed opportunities for innovation and poor levels of collaboration throughout a company.

This is particularly relevant for small and mid-sized companies, which need to be more productive, cohesive and innovate than their larger competitors  –– by aligning process, people and purpose.

How to Align Your Business Operations, People & Processes

No matter where they are in the business cycle, smart companies consistently seek to maximize growth, profitability and value.

The first step to organization alignment is assessment. It’s important to understand what makes your organization tick. This can include your mission, values, strategic direction and core competencies. As well as understanding how you’re current lining up (or falling short).

Next, develop a plan to remove barriers to alignment and change, and anchoring those changes in your business culture. Work with employees to communicate, share and develop the plan. From there, create a vision for change, removing obstacles for alignment and anchoring the changes in your culture.

By entering into this process, you’ll emerge in a stronger position, ready to move even farther and faster.

Are you ready to take the first step?
Focused Energy is a trusted C-Suite advisor and has an expert team from a variety of industries and backgrounds. To speak with one of our experts today,  contact us or call 844-413-6287.

Building Healthy Organizations  – From Inside Out

Focused Energy is dedicated to providing busy business leaders with the data, tools and skills needed for their businesses to thrive. We take a holistic approach — from forensic accounting and cash management to operations efficiency and employee engagement.

Learn more about how our expert team and services can help you.

How Aligned is Your Business?

No matter where they are in the business cycle, smart companies consistently seek to maximize growth, profitability, and value.

Take the First Step
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