Research-Backed Organizational Alignment Research Model of Strategy, Culture & Talent
Organizational Alignment Research Model
Each year, our clients tell us that it gets more challenging to succeed. Leaders tell us this means bigger goals, increased complexity and tighter budgets. Employees tell us this means higher expectations, an increased pace of change and the need to do more with less.
Yet, some leaders and teams significantly outperform their peers. We wanted to know why. So we launched a research initiative to understand what distinguishes the winners from the losers. Our presupposition? That Organizational Alignment (the optimum combination of business strategy, corporate culture and talent) makes the difference.
What we found? The data supports our organizational alignment theory to an astounding degree. Based upon research of 410 companies across 8 industries, highly aligned companies grow 58% faster and are 72% more profitable while significantly outperforming their unaligned peers in terms of:
The organizational alignment research model used 26 independent variables in the areas of business strategy, organizational culture and talent and measured them against 15 dependent variables of organizational performance in terms of financial and non-financial performance.
While all 26 ingredients in the organizational alignment recipe significantly impacted performance and any alignment factor taken alone will not work in isolation, seven factors matter most in creating strategic clarity, a high performing culture and differentiating your talent.
Organizational Alignment Research Model
The optimum combination of business strategy, corporate culture and talent to maximize performance using 26 independent variables measured against 15 dependent variables of organizational performance.
In highly aligned companies, employees clearly understand the business strategy, have no doubt that leadership is fully committed to the strategy, regularly find leadership highly responsive to change and consistently believe colleagues are successfully implementing the strategy throughout the organization. Strategic Clarity accounts for 31% of the difference between high and low performing organizations.
High Performing Cultures
In highly aligned companies, employees clearly understand the desired corporate culture, frequently observe the majority of leaders modeling the desired culture, regularly feel the culture motivates top performance, repeatedly receive timely information across the company and continually believe decisions demonstrate a healthy short- and long- term balance. High Performance Culture accounts for 40% of the difference between high and low performing organizations.
In highly aligned companies, employees universally believe the quality of talent at the company creates a competitive edge, repeatedly observe the company hiring top talent and retaining the majority of their top performers, continually have unfettered access to the resources necessary to succeed in their jobs and reliably respond positively to required changes. Differentiated Talent accounts for 29% of the difference between high and low performing organizations.
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