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Organisational Alignment – A critical ingredient to top performance

Posted by Ben Whittacker-Cook on 7/05/2020 12:56:33 PM

Bill Bain, Icehouse coach and business mentor, examines the struggles organisations face through misalignment. How does it impact your business? Why is it happening? And, most importantly, how to put it right?

Bill Bain Alignment

The MasterWidget company has good products and the people are working hard, but the company is just not operating cohesively. Therefore, inefficiencies are driving up costs, a silo mentality rules, frustrated people are leaving and the competition is gaining on them so they are leaking profits.

| What’s causing the problems?

Chances are they are not an aligned organisation. Just like a finely tuned engine, highly successful companies are in sync therefore they operate at a high level of performance. The parts work seamlessly together and the employees thrive hence producing an output their customers desire and rave about.

The importance of Alignment:

'Great performance is 1% vision and 99% alignment,' Jim Collins, author of 'Good to Great'.

Companies put a lot of effort into identifying where they want to go and developing plans to get them there. But misalignments within the organisation often happen therefore they are on a journey of non-performance.

Surveys have shown that approximately 65% of a strategy’s value is lost through its execution. That’s unbelievable. All that effort to create the roadmap to get to where you want to go only to have most of it undone through the delivery process.

Intuitively we all know that with anything, the more things that are in sync the better the results are going to be. Statistics show that companies that are highly aligned grow revenue 58% faster and are 72% more profitable while outperforming misaligned companies at great rates:

Customer retention 2.23 to 1 

Customer satisfaction 3.2 to 1 

Leadership effectiveness 8.71 to 1  

Employee engagement 16.8 to 1 
*LSA Global 

| Misalignment outcomes 

Organisational misalignment causes all sorts of issues. Here are but a few:

  • Poor employee engagement & high staff turnover
  • Silo mentality
  • Poor execution of initiatives
  • People working on the same things or at cross purposes or even on the wrong things all together
  • Unnecessary costs
  • A non-performance or toxic culture prevails
  • Customer satisfaction drops
  • Loss of profits 

Alignment starts with awareness and collaborative leadership. So why is it when everyone knows alignment is so critically important, that most organisations continuously fall short of their potential through misalignments?

The primary reason is simply that there is just a lack of focus and commitment in the area of being aligned. Despite its importance, it just doesn’t sit on most people’s radar. There are no checks and balances to ensure that things are aligned.

| Consider these questions:

Are all the company strategies aligned with the company’s Purpose, Vision & Values?

Do all team members buy into and commit to the strategies and understand what their roles are in delivering the results?

Does the company have the capability and capacity to be able to deliver?

Are your teams performing at the highest level? 

Do you have the correct measuring, monitoring and feedback systems in place? 

Are you rewarding the right behaviours?  

Is there a collaborative purposeful performance culture entrenched in the organisation? 

| Alignment brings: 

  • Clarity on the elements of success
  • Focus & discipline 
  • Connectivity between people  
  • Links between departments 
  • Buy in and commitment 
  • Higher employee engagement 
  • Transformation through high performing teams  
  • An ability to unleash talent 
  • Feedback loops  
  • A great culture with positive energy that just grows 
  • Improved customer experiences 
  • Higher profits 

Now is the time to consider what misalignments are happening within your organisation right now, the impacts they may be having on your business and then, what are you going to do about it. For an Alignment Pulse Survey and 60-minute consultation at no charge, please contact Bill Bain.

Bill is one of our most experienced coaches. Following a distinguished leadership career, he is now using his skills to coach and mentor people to reach their own business goals.

Check out our dedicated resource for businesses impacted by COVID-19. It’s full of useful information and resources, support and offerings, funding opportunities and partnership and coaching details.

For more business ownership and leadership advice,  check out more of our blogs. 

Topics: Leadership, Business Succession, Business Strategy & Planning, Sales, Growth, Bill Bain

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