Strategic alignment is a process that ensures an organization's structure, use of resources (and culture) support its

strategy Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art ...

. "In its simplest form, organizational strategic alignment is lining up a business' strategy with its culture." Successful outcomes also require an awareness of the wider environment, regulatory issues and technological change. Strategic alignment contributes to improved performance by optimizing the operation of processes/systems, and the activities of teams and departments. Goal-setting theory supports the relevance of clear, measurable operational objectives that can be linked to superordinate goals. This helps ensure resources are used effectively. The concept of strategic alignment is significant in the context of a global business environment where activities need to be coordinated across regions and time zones. Strategic alignment encompasses not only technical and functional activities, but also issues relating to

human resource management Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedalism and exceptional cognitive skills due to a large and complex brain. This has enabled the development of advanced tools, culture, ...

(and how best to develop people's motivation and capability). Studies suggest that the alignment of business strategy and HR strategy can impact performance. The process may extend across organizations and groups that share complementary objectives, e.g.

business partner A business partner is a commercial entity with which another commercial entity has some form of alliance. This relationship may be a contractual, exclusive bond in which both entities commit not to ally with third parties. Alternatively, it may be ...

s. It has also been found that coalignment of business strategy, business structure, IT strategy, and IT structure contributes to performance.

Superordinate Principles

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 The McKinsey 7S Framework is a management model developed by business consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA-- "Management By Walking Around" motif, and authored ''In Search of Excellence'') in the 198 ...

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 The triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with three parts: social, environmental (or ecological) and economic. Some organizations have adopted the TBL framework to evaluate their performance in a broader ...

" perspective. This emphasizes criteria that take account of Planet, People & Profit (3P Thinking). It raises issues relating to

Corporate Governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions th ...

, 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." 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. Guiding principles relating to ''

Environmental, Social and Corporate Governance ESG (environmental, social, and corporate governance) data reflect the negative externalities (costs to others) caused by an organization with respect to the environment, to society and to corporate governance. ESG data can be used by investor ...

'' (ESG) is at the heart of the new thinking.

Trevor and Varcoe

In an article in Harvard Business Review (May 2016), Jonathan Trevor and Barry Varcoe suggest two questions. These prompt reflection on strategic alignment. # How well does your business strategy support the fulfilment of your company’s purpose? # 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)

References

United States Office of Personnel Management The United States Office of Personnel Management (OPM) is an independent agency of the United States Federal Government that manages the US civilian service. The agency provides federal human resources policy, oversight and support, and tends t ...

'
overview
of strategic alignment in the context of

human capital Human capital is a concept used by social scientists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial ...

management *

ARMA International __NOTOC__ ARMA International (formerly the Association of Records Managers and Administrators) is a not-for-profit (charitable) membership association for information professionals, primarily information management (including records management) ...

'
discussion
of strategic alignment in the context of records and information management, July/August 2007

on strategic alignment provided by Resource Management Systems, Inc.
Strategy 101: It's All About Alignment
Forbes, October 16, 2012
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
The Case for Strategic Alignment
white paper by The Knowledge Compass, Inc. {{reflist Organizational performance management

Superordinate Principles

Trevor and Varcoe

See also

References