Misalignment in strategy is often subtle and difficult to spot. Without a well-aligned corporate strategy, chaos is likely to be introduced into your organization's environment.

Corporate strategy is a combination of strategic goals that support an organization's mission and vision. A corporate strategy aligns the key outcomes, or strategic goals, of an organization with operations and execution strategies. This means that all elements of the organization's ecosystem (the summation of internal and exterior functions within an organization's environment), are moving in the same direction. Mission drift is when operational initiatives are not aligned with strategic goals.

Strategic misalignment is critical. It can cause chaos and lead to unintended consequences. If not corrected, problems can quickly escalate and cause serious issues within an organization.

 

How can you tell if your corporate strategy aligns?

These are the symptoms to look for:

Financial Projections Missed

Missed projections can be traced back to many different issues but often strategic misalignment is the root cause. Why? Strategy alignment is the union of operations/execution, strategy. You can see the non-strategic activities that can be carried out at the grass-root level of an organization if they are not aligned. Managers and workers will attempt to determine their own direction as per suggested by corporate strategy consulting companies. You'll notice that deadlines aren't met in operations, product launches and service lines are delayed, which directly impacts revenue streams.

Growth is halted

Misalignment can lead to organizational misalignment that causes organizations to fail to achieve profitable growth. The leadership and employees do not want growth. They can't coordinate their efforts to correct the ship, despite their best intentions. This is especially true in cases where governance is poor or absent. To correct the business's course, all employees must work together. This requires the ability to align strategy and execution throughout.

Reactive spending and duplicity of initiatives are common

If the strategy is not aligned properly, divisions of companies can drift to a self-directed model and drift further away from corporate goals. Poor quarterly or annual results can lead to reactive spending and duplication of initiatives. It could also be a result of interdependent initiatives competing for limited resources. This unsynchronized effort can have an impact on each other, causing desperation and a vicious cycle in which resources and time are wasted. To sort out this problem you can hire a New York business consultant.

Cultural Erosion and Morale Issues Are Increasingly Common

Strategy misalignment can cause chaos. Organizational chaos can have a devastating effect on the leaders and employees of an organization. Morale is affected. You may notice a decline in corporate culture or morale issues.

Decrease in revenue and/or profitability

Strategy misalignment has a direct impact on the bottom line. Although revenue and profitability may decline for many reasons, the majority of them are due to strategy misalignment. Any of these symptoms can lead to a decrease in profitability. For example, new products or services are delayed in rolling out because they are not successful.

How to address strategy misalignment

It takes effort and time to get results with strategy. Re-instilling strategy alignment, and correcting misalignments, requires discipline, time, and work. This situation did not happen overnight and it will not disappear overnight.

Bi-directional planning (bottom-up and top-down) and proper plan governance can align corporate strategies and prevent negative effects on an organization. In this article, we will go into more detail about how to fix strategy misalignment.