Since we know that up to 90% of effectively formulated strategies fail due to execution, one of the most challenging barriers to effective execution is: an organization's own internal systems and processes!
The typical business is made up of combinations of components including:
What is needed is an organized effort for continually aligning systems - meaning, getting all the components of the organization working in close cooperation to meet the goals of the company.
Two types of misalignment can occur:
- Creeping misalignment. This occurs every day, usually in very small ways, leading to significant misalignments to the organization's strategy.
- Strategic misalignment. This occurs when the systems and resources of an organization are not deployed to support strategic goals. This type of misalignment typically surfaces suddenly as a barrier to executing new strategies.
BOTTOMLINE: The cumulative effect of dozens of creeping and strategic misalignments is a signficant constraint on an organization's ability to execute its strategy. One estimate is that up to 50% of the resources of a typical organization are not applied (aligned) to the mission and vision of the company. It's an ongoing process, and working on aligning systems is a key to achieving lasting business excellence.