Definition of strategic alignment
What is strategic alignment
There are many definitions of strategic alignment, mostly it is defined as the extent to which the information systems strategy supports and is supported by the business strategy, Silvius defines strategic alignment as the degree to which it enables and shapes IT applications, infrastructure, organization, business strategy and processes, as well as the process to achieve this, Luftman (2000) argues that strategic alignment refers to the application of information technology in an appropriate and timely manner, in line with business strategies, goals, and needs.
There are many definitions of strategic alignment, mostly it is defined as the extent to which the information systems strategy supports and is supported by the business strategy, Silvius defines strategic alignment as the degree to which it enables and shapes IT applications, infrastructure, organization, business strategy and processes, as well as the process to achieve this, Luftman (2000) argues that strategic alignment refers to the application of information technology in an appropriate and timely manner, in line with business strategies, goals, and needs.
Strategic alignment models
Strategic alignment models are visualizations of how priorities are linked and aligned vertically and horizontally across the organization. The alignment model is a tool that helps determine the degree to which an organization aligns its long-term plans with its resources and capabilities, and with the opportunities, weaknesses, and risks that need to be managed. It also helps the organization understand how to measure alignment progress. Strategically, it is important to ensure that each business activity is equipped with the resources and capabilities necessary to implement their part of the organization's strategy.
Strategic alignment models are visualizations of how priorities are linked and aligned vertically and horizontally across the organization. The alignment model is a tool that helps determine the degree to which an organization aligns its long-term plans with its resources and capabilities, and with the opportunities, weaknesses, and risks that need to be managed. It also helps the organization understand how to measure alignment progress. Strategically, it is important to ensure that each business activity is equipped with the resources and capabilities necessary to implement their part of the organization's strategy.
How does the strategic alignment process work?
The strategic alignment process starts with clear long-term goals and objectives and the big things that need to be achieved to ensure a secure future for the organization.
Each department, profit center, or business unit then identifies the parts of the organization's strategy that they can directly contribute to. Then, the divisions and business units formulate their supporting strategy and key priorities. Once the organization's strategy and divisional strategy are formulated, each function or department identifies critical focal points and formulates its own initiatives and plans. that are in line with the department's strategies and are in line with them.
Finally, each leader, team, or business unit creates their own strategies that relate to their department. This process is often referred to as strategic fit or establishing a line of sight through the organization.
The strategic alignment process starts with clear long-term goals and objectives and the big things that need to be achieved to ensure a secure future for the organization.
Each department, profit center, or business unit then identifies the parts of the organization's strategy that they can directly contribute to. Then, the divisions and business units formulate their supporting strategy and key priorities. Once the organization's strategy and divisional strategy are formulated, each function or department identifies critical focal points and formulates its own initiatives and plans. that are in line with the department's strategies and are in line with them.
Finally, each leader, team, or business unit creates their own strategies that relate to their department. This process is often referred to as strategic fit or establishing a line of sight through the organization.
The benefits of strategic alignment
Lack of strategic alignment Well-intentioned managers may spend countless hours pursuing initiatives that, while they may be good ideas, are not the right things to focus on at the time, and even worse if the organization's strategy is not clear to employees at the operational level, they may lose confidence in the organization's vision, mission, and value.
This loss of connection can kill their morale and willingness to give their best to the company which not only hurts the company culture but the bottom line, by ensuring there is strategic alignment in the organization it can be ensured that limited resources are not wasted through the following:
- Focus energy in the right areas at the right times
- Reduce or eliminate redundancy in the workplace
- Eliminate conflicting priorities
- Increase coordination among team members, communication and participation
- Clarify the organization's competitive capabilities and advantages
- Provide structure and clarity of purpose to employees
- Empower all team members to shape the future of the organization
- Support market maneuverability, which is a must in a rapidly changing global economy
Lack of strategic alignment Well-intentioned managers may spend countless hours pursuing initiatives that, while they may be good ideas, are not the right things to focus on at the time, and even worse if the organization's strategy is not clear to employees at the operational level, they may lose confidence in the organization's vision, mission, and value.
This loss of connection can kill their morale and willingness to give their best to the company which not only hurts the company culture but the bottom line, by ensuring there is strategic alignment in the organization it can be ensured that limited resources are not wasted through the following:
- Focus energy in the right areas at the right times
- Reduce or eliminate redundancy in the workplace
- Eliminate conflicting priorities
- Increase coordination among team members, communication and participation
- Clarify the organization's competitive capabilities and advantages
- Provide structure and clarity of purpose to employees
- Empower all team members to shape the future of the organization
- Support market maneuverability, which is a must in a rapidly changing global economy
The importance of strategic alignment
- Business rationalization
Business alignment or realignment is sometimes necessary especially for businesses that have experienced rapid growth Small businesses are often at risk of growing irrationally and haphazardly Functions or departments can be added without much thought you simply know you need someone to fill a role Or you need a section to handle this new process or procedure. For larger companies there may be older departments or departments that are no longer relevant.
Strategic alignment allows a business to look at its operations and its people, to see where they fit in. A telecom company may know that pagers and beeps but do its employees have the knowledge and skills for other technologies? If there is an overlap between one department and another, you might consider grouping them together. For example, your human resources department may overlap significantly with legal matters.
- Role rationalization
The other thing that happens to companies as they grow over time is that different people take on different roles. Your senior management may have undefined roles because they have been asked to wear many hats as a business expands rapidly.
Some entry-level and mid-entry jobs may have very restrictive descriptions which mean that employees cannot learn new skills and grow.
The process of strategic alignment also allows you to redefine employee roles when you do this you give everyone a better idea of what they are supposed to do and how they contribute to the growth of the company this can help engage employees it is often the workers who have a better idea of how their work contributes to the company more Enthusiastic and productive.
- Save time and money
Strategic alignment helps companies save time and money It's that simple, many companies have divisions that are outdated, outdated, or no longer profitable, they may have two or three divisions that have overlapping functions but can be more efficient if they are combined into a single unit with shared resources The strategic alignment process allows your business to look at these types of things and decide where to make changes.
The same goes for employee roles, you might have 2 or 3 very similar roles with a lot of overlap between them, is it possible to merge the roles? Perhaps one role can be expanded in a different direction allowing you to explore new markets, technologies or ideas.
For example many marketing departments now have employees who only work with social media, but do they crossover with other employees? Do you need an employee who will manage your Twitter account while exploring the latest social media channels that can help your business grow? Strategic alignment allows you to consider all of these elements.
- Business rationalization
Business alignment or realignment is sometimes necessary especially for businesses that have experienced rapid growth Small businesses are often at risk of growing irrationally and haphazardly Functions or departments can be added without much thought you simply know you need someone to fill a role Or you need a section to handle this new process or procedure. For larger companies there may be older departments or departments that are no longer relevant.
Strategic alignment allows a business to look at its operations and its people, to see where they fit in. A telecom company may know that pagers and beeps but do its employees have the knowledge and skills for other technologies? If there is an overlap between one department and another, you might consider grouping them together. For example, your human resources department may overlap significantly with legal matters.
- Role rationalization
The other thing that happens to companies as they grow over time is that different people take on different roles. Your senior management may have undefined roles because they have been asked to wear many hats as a business expands rapidly.
Some entry-level and mid-entry jobs may have very restrictive descriptions which mean that employees cannot learn new skills and grow.
The process of strategic alignment also allows you to redefine employee roles when you do this you give everyone a better idea of what they are supposed to do and how they contribute to the growth of the company this can help engage employees it is often the workers who have a better idea of how their work contributes to the company more Enthusiastic and productive.
- Save time and money
Strategic alignment helps companies save time and money It's that simple, many companies have divisions that are outdated, outdated, or no longer profitable, they may have two or three divisions that have overlapping functions but can be more efficient if they are combined into a single unit with shared resources The strategic alignment process allows your business to look at these types of things and decide where to make changes.
The same goes for employee roles, you might have 2 or 3 very similar roles with a lot of overlap between them, is it possible to merge the roles? Perhaps one role can be expanded in a different direction allowing you to explore new markets, technologies or ideas.
For example many marketing departments now have employees who only work with social media, but do they crossover with other employees? Do you need an employee who will manage your Twitter account while exploring the latest social media channels that can help your business grow? Strategic alignment allows you to consider all of these elements.
Steps to implement strategic alignment
- Commitment to the strategy
Strategic planning is basically a two-fold process and involves input from many people in the organization.
- First, assessing the environment in which the company operates. This includes assessing the state of the macro economy, political and legislative changes, competition, customers, and alternatives.
- Second, what the company should do to improve the chances of success. Asking for input from all functional leaders increases the chances of the strategy being accepted.
- Communicate the strategy
According to Professor Robert S. Kaplan of Harvard Business School and co-founder of the Balanced Scorecard “You have to communicate plans to employees seven times in seven ways” so that they can understand those plans.
Management system
Performance A performance management system provides clear definitions of the organization's strategy in terms of goals and objectives, helps organizations align priorities, resources and processes, and provides a comprehensive view of the organization's functions.
Then select the appropriate set of projects to support the strategy.
- Commitment to the strategy
Strategic planning is basically a two-fold process and involves input from many people in the organization.
- First, assessing the environment in which the company operates. This includes assessing the state of the macro economy, political and legislative changes, competition, customers, and alternatives.
- Second, what the company should do to improve the chances of success. Asking for input from all functional leaders increases the chances of the strategy being accepted.
- Communicate the strategy
According to Professor Robert S. Kaplan of Harvard Business School and co-founder of the Balanced Scorecard “You have to communicate plans to employees seven times in seven ways” so that they can understand those plans.
Management system
Performance A performance management system provides clear definitions of the organization's strategy in terms of goals and objectives, helps organizations align priorities, resources and processes, and provides a comprehensive view of the organization's functions.
Then select the appropriate set of projects to support the strategy.