How Strategic Alignment Facilitates Strategy Execution

Strategic alignment is the foundation of execution. Webster defines alignment as close cooperation or arranging in a straight line. From an organizational perspective, strategic alignment provides the ability to focus -- to direct individual initiatives through common processes, procedures, values and operating principles toward the fulfillment of organization objectives. It sounds complicated, but alignyour organization processes, functions and procedures with the business plan is nothing more than giving careful thought to every element that will influence getting the results you want. Think of it this way.

A precision marching band with hundreds of members does not march in perfect formation by accident. Rather, it takes careful planning and coordination. Just think if each member of the band had a different idea of how to march across the field, or a different tune they wanted to play. You would likely have chaos, not to mention horrible sounding music. Coordinated or aligned, with everyone marching in the same direction and playing together, a precision marching band is a joy to watch.

Businesses are no different. Each member of the team needs to play his or her role, though not in lockstep because innovation would go right out the window. But for strategic alignment to occur, each member needs to be coordinated, or aligned, with other members of the organization and with overall business strategy.

What Elements Must Be Included in Strategic Alignment?

It has been said that "every organization is perfectly aligned to get the results it is getting." It is an idea that m,akes you stop and think. Strategic alignment is an important component of strategic planning, but it is not an event, It is a process, because organizations are forever evolving.

Strategic alignment begins with clarity of direction; essential agreement on the firm's mission, vision, values, unique market position, strategic direction, and overall goals. Step two of strategic alignment includes making certain that the firm's priorities with regard to financials, customers, operations and people are supported by complementary processes, procedures and firm structure.

Finally, strategic alignment only occurs when the firm's human capital, organization capital and information capital are coordinated to support the firm's strategic direction. Kaplan and Norton, authors of The Balanced Scorecard describe these three elements this way:

• Human capital comprises the "skills, talent and knowledge that a company's employees possess";
• Information capital is the network of databases, information systems and collective knowledge the firm utilizes;

• Organization capital deals with the culture of the firm, the firm's leadership, how engaged employees are with firm strategy and how well employees share information.

Managing Strategic Alignment Using the Balanced Scorecard