Discover how understanding the limitations of averages and embracing probabilistic thinking can improve decision-making and risk management in business.
Align and Thrive: The Importance of Organizational Alignment and Agility
Introduction: The Need for Alignment in Agile Growth Companies
During a recent conversation with a fellow professional, the topic of organizational alignment arose. For a company to grow and adapt, it must be aligned, with all activities reinforcing its objectives. Alignment begins with the CORE – Core Values, Core Purpose, Core Customer, Brand Promise, and Profit/X, and these elements form the foundation upon which everything else is built.
Building Strategy Around Your Core
Once the CORE is established, you can develop a strategy that includes your Flywheel, BHAG, 3HAG, and 13-Week Sprints. The strategy should be based on the CORE without contradicting any of its elements. With a solid strategy, execution then focuses on achieving the targets set out in the strategy.
The Pitfalls of Misaligned Goals
Many companies set Core Values, a five-year plan, and annual goals but fail to align these with their CORE. This misalignment can result in pursuing revenue at the expense of profitability or prioritizing profit to the detriment of essential investments in people, processes, and equipment. Such scenarios are common in Corporate America and often wrongly attributed to short-termism.
The Power of Alignment and Agility
Alignment and agility are crucial for sustainable growth. When a company is aligned, its activities reinforce its Flywheel, target Core Customers, meet customer needs, deliver products and services efficiently, fulfill the Brand Promise, and achieve the Profit/X goal.
Agility enables an organization to respond effectively to a changing world. In an ever-changing environment, decision-making must be pushed to where the information is. Proper decision-making can only happen when the decision-maker knows the organizational intent (Strategy) and the framework for making that decision (CORES).
Conclusion: Aligning Your Organization for Success
To achieve the growth and success you seek, identify your CORES and develop a strategy accordingly. Ensure that everything in your organization aligns with these CORES, and you will be well on your way to thriving in an ever-changing business landscape.
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