The Organizational Alignment Handbook: A Catalyst for Performance Acceleration

272 Pages·2011·2.46 MB·English

by  H James Harrington

Business Management H
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In the same way that a well-defined approach is needed to develop an in
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effective strategic plan, an equally well-designed approach is needed t
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to support the alignment of your organization’s structure, management

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concepts, systems, processes, networks, knowledge nets, training, hiring,
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and reward systems. Examining top-down, bottom-up, and core planning e
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and execution processes, The Organizational Alignment Handbook: A l
Catalyst for Performance Acceleration provides a systematic approach for
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establishing the infrastructure needed to support a successful transformation
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and make your strategic plan a reality. E

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Bridging the gap between macro and micro approaches with a single
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unified theory, the book provides the understanding needed to assess the G
effectiveness of your organization’s current management system. It explains A
how to identify potential projects, introduce new practices, plan for resource N
allocation, and define and recommend decision governance. Identifying the I
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capability constraints you must resolve in order for your company to thrive in A
an increasingly competitive business environment, the book explains: T
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• How the organizational master plan fits into alignment activities
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• How strategic planning process and outcomes can be made A
part of the performance plan for individuals L

• How to use controllable factors as the foundation for your A
master plan L
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• How to develop a set of vision statements that defines how
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your organization will function in the future
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The management skills your organization currently possesses might be
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effective in today’s environment, but are they the skills needed to meet
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strategic objectives in the future? This book outlines a step-by-step approach
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for achieving organization-wide alignment of processes, applications, and
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systems, and to ensure acceptance of the results by all stakeholders. It
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includes examples of organizations implementing the strategies discussed
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as well as a review of the activities you need to follow to minimize the time it
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takes to reach your performance objectives today and in the future. O
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K13579
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ISBN: 978-1-4398-7732-6
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www.crcpress.com
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www.productivitypress.com
K13579 cvr mech.indd 1 10/20/11 11:59 AM
THE ORGANIZATIONAL
ALIGNMENT
HANDBOOK
A Catalyst for
Performance Acceleration
TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk
THE ORGANIZATIONAL
ALIGNMENT
HANDBOOK
A Catalyst for
Performance Acceleration
H. James Harrington • Frank Voehl
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2012 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20111011
International Standard Book Number-13: 978-1-4398-7733-3 (eBook - PDF)
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Dedication
I dedicate this book to my new granddaughter, Grace .  I look
forward to many happy moments with her and her parents
over the years ahead. Work is good, but family is better.
—H. James Harrington
I dedicate this book to my two granddaughters, Abby Rose and
Emma Catherine, who both love to read and be read to, in spite
of their young ages. And to their two wonderful parents, Jeff
and Christina Voehl, who never met a book they didn’t enjoy
and a story they didn’t like. Perhaps my next book will be about
their love of books. Read on, my sweet ones, read on!
—Frank Voehl
TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk
Contents
The Management for Results Handbook Series ...............................xiii
Preface .................................................................................................xvii
Acknowledgment ..............................................................................xxiii
About the Author—H. James Harrington ........................................xxv
About the Author—Frank Voehl ......................................................xxix
Other Books by H. James Harrington and/or Frank Voehl ............xxxi
Chapter 1 Overview .............................................................................1
Why Organizational Alignment? ..............................................1
The Organizational Alignment Functional Model .................2
Key Implementation Challenges...........................................5
Gauging Effectiveness ............................................................6
Now Ask Yourself These Questions: ....................................7
Harnessing the Energy of Alignment: With Albert
(“Butch”) Einstein and Jack (“Sundance”) Welch ..................9
The Concept of Organizational Alignment ......................10
Lessons from “Butch” Einstein ...........................................14
Lessons from “Sundance” Welch ........................................14
Two Lessons from Butch and Sundance ............................15
Organizational Alignment Outcomes ....................................16
Challenges to Implementation .................................................18
New Sources of Competitive Advantage ..........................20
Working This New Aligned Way ........................................21
Focusing the Alignment Strategy ..................................22
Bose Shows the Way ........................................................24
Chapter 2 Alignment Considerations ..............................................27
Vision-Centered Organizational Alignment Models ...........27
Approach ...............................................................................28
Outcomes ..............................................................................28
Key Implementation Challenges.........................................29
Gauging Effectiveness .........................................................30
vii
viii  •  Contents
Macro-Alignment/Micro-Alignment and Culture
Change: Key Components ........................................................32
Goals and Values ..................................................................33
Results Are What We Are After ........................................34
Key Implementation Challenges.........................................36
Gauging Effectiveness ..........................................................38
Organizational Alignment Readiness and Culture .............40
Who Is Doing It? ..................................................................42
Outcomes ..............................................................................43
Key Challenges .....................................................................44
Organizational Alignment and e-Business Strategy ...........46
Approach ................................................................................47
Outcomes ...............................................................................49
Chapter 3 The Organizational Alignment Methodology ...............53
The Organizational Alignment Cycle .....................................53
Typical OAC Application .....................................................55
Organizational Alignment and Organizational
Planning .............................................................................57
Approach ................................................................................58
Outcomes ...............................................................................59
Organizational Alignment and Organizational Change
Management ...............................................................................61
Chapter 4 Phase I. Strategic Planning ..............................................65
Introduction to Strategic Planning Phase .............................66
Organization’s Master Plan (OMP) ........................................66
Setting Direction .......................................................................70
Defining Expectations (Measurements) .................................73
Defining Actions .......................................................................74
Approach to Developing a Business Plan ...............................74
Outline of a Typical Business Plan .....................................75
Approach to Developing a Strategic Business Plan ..............77
Strategic Business Plans versus Strategic Improvement
Plans ............................................................................................79
Developing a Strategic Improvement Plan.............................79
Activity 1. Assessing the Organization ............................80
Contents  •  ix
Activity 2. Developing Vision Statements for Each
of the KBDs...........................................................................80
Activity 3. Developing a Set of Performance Goals ........80
Activity 4. Defining Desired Behaviors ............................80
Activity 5. Preparing 3- to 5-Year Improvement
Plans for Each of the Vision Statements ...........................80
Creating the Strategic Plan .......................................................81
Annual Business Plan ...............................................................83
Summary ....................................................................................83
Chapter 5 Phase II. Processes and Networks ...................................85
Introduction to Process and Networks Phase ......................86
Defining Major or Core Processes .....................................87
Process Improvement Rules ................................................89
Process Improvement Approaches ................................91
Major Networks ...............................................................92
Organizational Alignment and Knowledge
Mapping ..........................................................................93
Key Processes and Network Implementation
Challenges .........................................................................98
Summary .................................................................................100
Chapter 6 Phase III. Organizational Structure Design .................101
Introduction to Organizational Structure
Design Phase ......................................................................102
The Strategic Perspective ........................................................102
Restructuring Principles ........................................................103
Design Criteria .........................................................................109
Realignment Principles and Design Criteria .......................109
List of Activities to Help Define the Design ...................109
Measurement System ..............................................................112
Key Performance Indicators..............................................113
Restructuring Approach .........................................................114
The Roadmap for Organizational Restructuring ...........116
The Alignment Process ...........................................................116
Activity 1. Assessment .......................................................117
Communication Maps ..................................................117