Strategic alignment

Why it makes sense that we are not initially aligned

People regularly ask us if it is really necessary to be aligned with each other. Isn’t it normal and maybe even beneficial when different board members or different groups in the organization have different or divergent ideas, preferences, and opinions about what our strategy should be? After all, we have different concerns and interests, just as we have different responsibilities, right? Therefore, it makes sense not all of us are seeing eye to eye, doesn’t it?

Strange it certainly isn’t. Indeed, we are forced to look at reality through our own unique “filter.” We, as a human species, can not do any different. Unfortunately. we are cognitively limited. We can only process a certain amount of data, and therefore must create a mental model “between our ears” with which we very selectively filter information. Because of all our unique life experiences, education, preferences, interests, etc., we all construct a personal and unique model. This also applies to something like business strategy: “Strategy is in the eye of the beholder.” Have the Marketing Director and the Operations Director look at the same business strategy, and they will pick out totally different priorities. And start acting accordingly. Where one goes left, the other goes right. Perfectly logical all around. But at the same time, it is also completely dysfunctional.

Why it remains important to achieve strategic alignment

A 2018 meta-analysis of as many as 78 studies on this topic by Van Knippenberg and colleagues shows that when disagreement on strategy is present in the Board as the board members have different views on strategy, this actually leads to poorer decision-making and also poorer organizational performance.

But how come? This meta-analysis also provides insight into that: when board members have different ideas, preferences, and opinions about strategy, it negatively affects the relationships of board members. It leads to more tensions and conflicts, as we associate disagreement with personal dislike. We tend to believe when someone questions our views or perspective, they therefore also question our abilities and knowledge. This creates stress, dissatisfaction, and the idea that members represent conflicting interests and must protect their own positions and goals.

Those poorer interrelationships and seemingly conflicting interests create poorer mutual communication, contributing to suboptimal decision-making. Good decision-making requires the exchange, discussion, and integration of information, insights, and perspectives. This is, however, exactly what usually isn’t happening in strategically unalligned teams. In these teams, information, insights and perspectives are often not shared openly because of members being afraid or unwilling to open up and speak their minds.

And if the board itself is not on the same page about strategy, the disallignment will also be felt in the workplace itself. The crack of light shining through the top of the organization translates into a laser show on the floors below.

In short, disalignment creates poorer interrelationships and thus communication, leading to poorer strategic decision-making and poorer organizational performance. Therefore, it is important to achieve strategic alignment. And even though our brains are not necessarily built for it, alignment is absolutely achievable!