strategic alignment

Creating operational alignment involves translating an organization's Superordinate Goals and overall strategy into the more immediate objectives of a team or department. In addition to reviewing systems and processes, leaders also need to develop the skills, competencies and motivation of people in the organization. The McKinsey 7s Framework provides an overview of this type of analysis, highlighting elements that contribute to alignment. This type of review, with follow-up interventions, contribute to key activities (linked to products and services) meeting customer and stakeholder expectations. At the same time, effective internal systems ensure the best use of resources, which contributes to future success.

Strategic Alignment requires awareness of Superordinate Principles that may include the 3BL "triple bottom line" perspective.{{Cite journal|last1=Schulz|first1=Steven A.|last2=Flanigan|first2=Rod L.|date=2016-05-03|title=Developing competitive advantage using the triple bottom line: a conceptual framework|url=http://dx.doi.org/10.1108/jbim-08-2014-0150|journal=Journal of Business & Industrial Marketing|volume=31|issue=4|pages=449–458|doi=10.1108/jbim-08-2014-0150|issn=0885-8624}} This emphasizes criteria that take account of Planet, People & Profit (3P Thinking).{{Cite web|last=Kraaijenbrink|first=Jeroen|title=What The 3Ps Of The Triple Bottom Line Really Mean|url=https://www.forbes.com/sites/jeroenkraaijenbrink/2019/12/10/what-the-3ps-of-the-triple-bottom-line-really-mean/|access-date=2021-01-26|website=Forbes|language=en}} It raises issues relating to Corporate Governance, which now include social and environmental considerations. KPMG make the point: "Businesses not taking ESG seriously are beginning to lose customers, employees and financing; eventually they will become unviable."{{Cite web|title=ESG: Environmental, Social Governance - An Introductory Guide for Business (August 2020)|url=https://assets.kpmg/content/dam/kpmg/uk/pdf/2020/08/esg-brochure.pdf}}

There are two main models of corporate governance, (i) the shareholder model, which prioritizes the return on investment for investors, and (ii) the stakeholder model that also emphasizes a responsibility towards other groups and wider considerations.{{Cite web|last=Mac|first=Ryo|date=2018-02-11|title=Corporate Governance, and the Stakeholder vs. Shareholder Model|url=https://medium.com/skeptikai/corporate-governance-and-the-stakeholder-vs-shareholder-model-10e756241d3b|access-date=2021-01-26|website=Medium|language=en}} Guiding principles relating to Environmental, Social and Corporate Governance (ESG) is at the heart of the new thinking.

In an article in Harvard Business Review (May 2016),{{Cite news|last1=Trevor|first1=Jonathan|url=https://hbr.org/2016/05/a-simple-way-to-test-your-companys-strategic-alignment|title=A Simple Way to Test Your Company's Strategic Alignment|date=2016-05-16|work=Harvard Business Review|access-date=2020-03-26|last2=Varcoe|first2=Barry|issn=0017-8012}} Jonathan Trevor and Barry Varcoe suggest two questions. These prompt reflection on strategic alignment.

1. How well does your business strategy support the fulfilment of your company's purpose?
2. How well does your organization support the achievement of your business strategy?

Findings suggest that both elements contribute to performance. The article notes that (alignment) 'also leads to a more positive work climate, above-average staff engagement, a strong commitment to values and few(er) energy-sapping turf wars and in-fighting'. (ibid)

• Superordinate Goals that are linked to an organization's Vision and Mission Statement
• Strategy Markup Language (StratML), whose purposes include facilitating strategic alignment through the establishment of literal linkages among performance indicators and the strategic goals and objectives they support.
• Environmental scanning
• Competition
• Sustainability reporting
• [https://en.itpedia.nl/2022/01/02/business-strategie-alignment-en-de-geheimen-van-strategische-planning/ Business strategy alignment and the secrets of strategic planning]

{{reflist}}

{{refbegin}}

• {{Cite book|last=Project Management Institute|title=A guide to the project management body of knowledge (PMBOK guide)|date=2021|others=Project Management Institute|isbn=978-1-62825-664-2

|edition=7th|location=Newtown Square, PA}}

• United States Office of Personnel Management's [https://www.opm.gov/policy-data-oversight/human-capital-management/strategic-alignment/ overview] of strategic alignment in the context of human capital management
• ARMA International's [http://www.arma.org/bookstore/files/andelson.pdf discussion] of strategic alignment in the context of records and information management, July/August 2007
• [http://www.rms.net/strategic_alignment_r_sa.htm Articles] on strategic alignment provided by Resource Management Systems, Inc.
• [https://www.forbes.com/sites/larrymyler/2012/10/16/strategy-101-its-all-about-alignment/ Strategy 101: It's All About Alignment], Forbes, October 16, 2012
• [http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2281&context=infopapers Strategic alignment of business processes], E. D. Morrison, A. K. Ghose, H. K. Dam, K. G. Hinge, K. Hoesch-Klohe, University of Wollongong, December 5, 2011
• [http://www.knowledgecompanyinc.com/images/The_Case_for_Strategic_Alignment_-_vC010106.pdf The Case for Strategic Alignment], white paper by The Knowledge Compass, Inc.

{{refend}}

{{reflist}}

Category:Organizational performance management