Yis - 040409

Aligning Support Functions5

Contents

Alignment : A Source of Economic value1

Corporate Strategy & Structure : Historical Perspective2

Aligning Financial & Customer Strategies3

Aligning internal process & Learning & Growth Strategies4

Aligning Boards and Investors7

Aligning External partners8

Managing the Alignment Process9

Total Strategic Alignment10

Cascading : The Process6

ALIGNMENT MATTERS

Orchestrating change

through executive leadership

Defining: • Strategy

Maps• Balance

Scorecards

• Targets• Initiatives

Aligning all parties with the strategy• Corporate• Business

units• Support units• External

partners• Boards

Providing:• Education• Communicati

on• Goal setting• Incentive

compensation• Training of

staff

Integrating strategy into:• Planning• Budgeting• Reporting • Managem

ent Reviews

MOBILIZATION STRATEGYTRANSLATION

ORGANIZATIONALIGNMENT

EMPLOYEEMOTIVATION

GOVERNANCE

5 KEY MANAGEMENT PROCESS

Relationship between Managerial Excellence & Level of Benefits

1 = “We are awful at this” 4 = “We are good at this”2 = “We are not good at this” 5 = “ We are best practice at this”3 = “We are okay at this”

ENTERPRISE DERIVED VALUE

Customer

Derived Value

Enterprise

Derived Value

Value Creation

Enterprise Value Proposit

ion

Customer Value Proposit

ion

Value CreationStrategy

Customer Value Proposition

BEST TOTAL COST

PRODUCT LEADER

CUSTOMER SOLUTIONS

SYSTEM PLATFORM

Offer products & services that are

consistent, timely, and

low cost

Offer Products &

services that expand existing

performance boundaries

Provide a customized

mix of products and

services, combined with know

how, to solve customers’

problem

Provide a platform that becomes the

industry standard for

offering products and

services

Enterprise Value Proposition

FINANCIAL CUSTOMER INTERNAL PROCESS

LEARNING & GROWTH

What are shareholder expectations for financial performance

?

To reach our financial

objectives, how do we

create value for our

customer ?

What processes must we

excel at to satisfy our customers

and shareholders

?

How do we align our intangible assets – people,

system, and culture – to improve the

critical processes?

Building the Enterprise Scorecard

Source of Enterprise Synergy

MANAGING ALIGNMENT AS A PROCESS

• The corporate office defines strategic guidelines to shape strategies at lower levels of the organization

1. Enterprise Value Proposition

• The corporation’s board of director reviews, approves, and monitor corporate strategy

2. Board & Shareholder Alignment

• The corporate strategy is translated into those corporate policies that will be administered by corporate support units

3. Corporate office to corporate support unit

• The corporate priorities are cascaded into business unit strategies

4. Corporate office to business units

• The strategic priorities of the business units are incorporated in the strategies of the functional support units

5. Business units to support units

• The priorities of the customer value proposition are communicated to targeted customers and reflected in specific customer feedback and measures

Business units to customers

• The shared priorities for suppliers, outsourcers and alliance partners are reflected in business unit strategies

7. Business support unite to suppliers and other external partners

• The strategies of the local business support units reflect the priorities of the corporate support unit8. Corporate support

Building Alignment into the Planning Process

CASE STUDY : SPORT-MAN INC.Sport-Man Inc. Enterprise Scorecard

CASE STUDY : SPORT-MAN INC.Corporate & SBU Alignment at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC.Support Unit Alignment at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC.The Alignment & Governance Process at Sport-Man Inc.

CASE STUDY : SPORT-MAN INC. Organization Alignment Map at Sport-Man Inc.