Strategic Alignment
June 2005

The Power of Strategic Alignment

Organizations go through an endless transition between periods of stability and episodes of chaos. Chaos increases when business conditions change and people are too unclear or unwilling to move into the next evolutionary phase of "what's trying to happen here." The leader's job is to clarify "where and why", as well as inspire and insist that people figure out the "how". As these current and very real client situations illustrate, it's not always easy to achieve strategic alignment:

1. A high tech company needs a new sales model with changing job descriptions to expand profitably and ensure growth opportunities for everyone. The most accomplished salespeople like it the way it is.
2. A new CEO sees the need for enhanced customer service excellence and collaboration to keep competitors out of the game. Staff have gotten quite used to doing things their way during a lengthy transition involving absentee leadership.
3. An owner hired a general manager to create accountability to operational excellence and increased sales. A key manager is "more than difficult to manage" and says it is impossible to predict when technical solutions to enhance sales will be successfully implemented. All attempts at accountability have provided no improvement.
4. A professional services firm is desperately attempting to hire qualified people to keep up with the growing demands of the Big Customer. The Big Customer is "abusive" at times in a way that "burns out" some of the existing employees. People wonder if the "balanced work-life" conversation is a value to be realized or a nice platitude.

One of last year's "case studies" is this year's success story. An outgoing president had left behind damaged morale, a culture of fear, and negligible profitability. The business climate was impacting sales in the wrong direction. To make matters worse, the media was printing stories questioning the viability of their primary product. The owner realized it was time for serious change. She asked her three directors to create scenarios for profitability in this "unwelcome market." As the directors openly explored downsizing the company, including one of the director's departments and her own position as well, an all day meeting with the entire company was held to send an important message: "We know change will occur and are still determining what is best for our survival. We can not guarantee everyone will remain employed here, but we do promise to treat everyone respectfully and to keep you all fully informed as we make the necessary changes."

Within a month the company was reorganized and the department that "added value but was not critical for survival" was discontinued. There were many tears, as well as sincere recognition for many years of good service. A new salesperson replaced the incumbent who was deemed "unprepared for the task ahead". The two remaining directors brought the next level of managers together and engaged them in regular meetings to understand and implement the "new product development strategy". The first few meetings were one sided with a lot of tight lipped listening among the newer members of the management team. With support, honest dialogue occurred and the doubts and questions that needed answers were raised and addressed. The new salesman began hitting the numbers. The two directors learned to involve and inspire their people instead of judge or roll over them.

Today they are exceeding their profitability projections and are introducing new products that are exciting to their supply chain! What's the secret to their success? Openly telling the truth of the situation, along with honest dialogue about what was needed to survive. In short, the secret is a style of leadership that tapped into the power of strategic alignment. If you are looking for your own version of this secret, we invite you to check out Resource #6 The Power of Strategic Alignment, in our Getting Started Now section behind the purple heart on our home page or or call our office at 503-632-8572. In any event, don't continue struggling to solve your problems without getting your people on the same page. It is mission critical!