Is Your Company as Strategically Aligned as You Think It Is?

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An analysis of more than 500 employees across 12 organizations found that actual strategic alignment was two to three times lower than perceived alignment.

showed that companies that build strategic consensus around supporting their customers’ needs have lower costs and higher revenues, profits, and valuations. When senior executives, middle managers, and front-line employees are all aligned around a customer-focused strategy, they are less likely to end up spending wastefully or investing in disparate initiatives that consume resources without driving customer value.

What happened? ITI shifted its strategy to explicitly focus on the one factor it determined was most important for driving customer satisfaction: giving customers weekly status updates on their orders. This new approach enabled ITI to forge strategic consensus across the organization and reduce the amount of time people spent on internally focused activities.

In 2021, the organization identified rapid quoting as a critical customer need, and fully refocused its strategy around this goal. “We paused or deferred most of our internal initiatives, focusing our attention, effort, and energy on rapid quoting. [We] provided our customer service reps with an updated and streamlined computer interface, more training, and everything else possible to support their work.

“Listening — not talking — to employees was the key,” explained Margaret Seeliger, Global SVP of Strategy at Sodexo’s Energy & Resources division, when describing how her team visited more than 50 sites all over the world to connect directly with frontline teams.

 

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