Strategic Alignment vs. Strategic Agreement
Smart leaders and those who facilitate strategy retreats know that strategic alignment does not mean agreement.
Strategic alignment means that each leader will visibly support the directions and decisions regardless of their personal differences because they think it makes enough overall sense for the greater good. This manifests itself as the executive team looking, feeling, and acting as a unified force working toward a shared outcome.
Strategic agreement requires that each person on the executive team deeply believes in the direction and plan personally and professionally.
What Strategic Alignment Can Do for Your Business
The power of strategic alignment occurs when every part of the organization is working in a unified fashion to implement the “intentions” that define the business strategy in a way that makes sense to the business AND the people.
Our organizational alignment research found that highly aligned companies not only grow revenue 58% faster and are 72% more profitable, but they also outperform unaligned organizations at these rates:
And it all starts with the executive team. In fact, strategic clarity accounts for 31% of the difference between high and low performing leadership teams.
Strategic Alignment Does Not Mean Agreement
But don’t make the common mistake of thinking that strategic alignment means that all stakeholders must agree. Reaching 100% agreement on every high stake strategic issue is not only difficult, but full consensus is not very realistic across different internal and external constituents.
The executive team does not need to agree with every decision, but each and every leader must get behind and commit to supporting the plan of action 100%.
A Client Example
The recent executive team was debating a critical go-to-market choice related to operationalizing their new unique value proposition. But no matter how much time and effort the leadership team spent discussing it, they could not reach a satisfactory decision. Like many teams frustrated with ineffective conversations that go “round and round,” they turned to the CEO for answers.
And like any decisive CEO frustrated with her team’s inability to make strategic decisions, she made the final call on how to proceed. And like most leadership teams caught in this situation, not everyone liked the decision; some key players on her team resented being told an answer that did not fit with their personal or professional agenda.
As you can imagine, the strategic initiative stalled.
What Should This Leadership Team Have Done Differently?
The Bottom Line
Strategies do not need agreement. Strategies need alignment. Strategic misalignment at the executive level threatens the health and success of the entire organization. You can have disagreements, but every leader should visibly commit to moving the plan forward.
To learn more about creating strategic alignment, download 7 Proven Ways to Stress Test Your Strategy Now
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