1. 1 Executive Team Alignment The Power of Instrumentation

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4. 4 Topic # 1 What is Strategic Alignment?

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

6. The Reality 6 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

7. 7 Contributions to Company Value Intangibles assets are responsible for 70% of value 7 Ernst and Young, 2009LeadershipCultureInnovationEngagementAlignment Tangible Assets Intangible Assets

8. 8 Topic # 2 How to recognize poor alignment

9. Common 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

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

11. 11 Topic # 3 Can alignment be quantified?

12. The Axes of Alignment 12 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

13. 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 Process Customer Strategy People

14. Overall Alignment Index “The Main Thing” Category “ Critical Success Factors” Dependent Factor “ Key Indicators” Survey Questions Q1 Q2 Q3 14 Alignment Analytics Summary Wheel Red – alert (1-55) Yellow – opportunity (56-79) Green – best practice (80-100)

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

16. 16 Alignment Analytics Correlation analysis

17. 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

18. 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 18 pete@aligncomm.com

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