Introduction It''s All About Alignment The key strategic imperative of any business is alignment. Alignment has long been the greatest challenge of leadership. Its importance, along with its effect on performance, has only increased over time. Today, to come close to competing and succeeding in the chaotic and rapidly shifting business environment, leaders must create aligned teams and organiza-tions. For extraordinary companies--those that consistently com-pete and win in the marketplace--the overriding characteristic that is invariably present and separates them from their competi-tion is alignment. And, because it is so important, the challenge is all the more difficult. Most leaders, teams, and companies struggle with alignment because, until now, they lacked an effective and easy-to-apply framework and approach. As a result, they tackle individual as-pects of business--such as vision, strategy, processes and systems, and culture--without aligning them.
The following chapters will introduce you to the Business Code, a framework for alignment that can be applied to any organization or team, regardless of its size. It will show leaders and their companies how to confront and overcome the challenges of misalignment. The code also provides the tools needed to create strategies and initiatives and take actions that result in the alignment required to compete and achieve high levels of performance. The outcomes of applying this framework include: Alignment that clearly defines the trusted relationship of the business to the customer, the customer''s expectation, and what the brand stands for. Alignment of leadership that is responsible for role modeling, reinforcing, and leading an aligned culture and is committed to the reputation and success of the business; leaders who hold themselves and other leaders responsible for their personal alignment to the organization, as well as its vision, and its culture. Alignment of goals and strategies across and down through or-ganizations and teams, large and small, demonstrated by the contribution each group and team member makes to the or-ganization''s vision and strategies. Alignment of each individual to the values, beliefs, and expecta-tions of the culture; each member knows how success is cre-ated at individual, group, and company-wide levels. Alignment that results in every person being responsible and acting in alignment with the business''s intention, as conveyed through each member''s commitment to the customer.
Alignment that contributes to the resilience that great companies and teams demonstrate when confronted with difficult issues and challenges and keeps them from going off course or los-ing sight of their mission, vision, and intended outcomes. Alignment that is demonstrated through every decision and ac-tion taken by every member of the organization or team, how they fit into its culture, and what the company and team have promised to deliver to the customer. THE DANGERS OF MISALIGNMENT Most of us are all too familiar with the consequences of misa-lignment. We get caught up in the conflicts and blame games that result when everyone is not working toward the same out-come. Time and energy is wasted trying to overcome misa-lignments, which can disrupt and destroy teamwork and even-tually bring down entire companies. The consequences of mis-alignment are grave. Among others, they include: A lack of focus on results that support the vision and strategy of the team and organization, resulting in poor performance. A lack of a shared and consistent approach to serving the cus-tomer, which damages the company''s reputation and brand and creates customer distrust.
A lack of the ability to leverage and fully utilize team members'' individual talents and strengths, which decreases motivation and reduces their desire to contribute. A lack of clear expectations resulting in unmet performance re-quirements, poor accountability, distrust, and potentially divi-sive conflict. A lack of responsibility and mutual accountability among team members that results in the loss of trust and commitment to individual and team performance. A lack of open communication, resulting in finger pointing, poor conflict management, and dysfunctional behavior. A lack of aligned approaches to problem solving, deci-sion-making, role definition, and processes and procedures, causing confusion and disengagement. A lack of teamwork among leaders that cascades through an organization, which results in conflict, an "us versus them at-titude," and an inability to perform at the required level. Clearly, misalignment is costly. Typically a negative financial impact results, which can be obvious or often hidden.
Among the hidden costs are unmet goals and objectives; missed opportuni-ties; missed sales; unmet promises to the customer; and a myr-iad other failures that result from dysfunction within a group, team, or company. One way or another, misalignment results in a failure, or a lack, of execution, which has a negative financial impact on a business. All too often, leaders find themselves searching for answers to these problems without realizing that misalignment is at the root of them. They instead rely on hit-and-miss approaches and fixes, as well as temporary measures that provide only short-term solutions. Obviously, the consequences of misalignment are too many and too powerful to ignore. Therefore, leaders must focus on the challenge of creating and leading aligned teams and organiza-tions and view it as an opportunity to improve performance. Great leaders and team members actively seek out and confront misalignments. THE PATH OF ALIGNMENT Recognizing that alignment is the greatest challenge leaders face is only the beginning.
The ongoing effort of aligning people to work together to contribute to and accomplish a set of shared outcomes and goals requires knowledge and well-developed leadership competencies. The most difficult job is managing and leading others. At the root of the failure of organizations and teams to per-form is the inability of people to work together in support of one another and their shared goals. No one accomplishes anything without the help of others and working together toward a shared goal requires alignment. To begin effectively aligning and leading their organizations and teams, leaders must clearly and consistently address the what, why, and how of the company. If this were easily accom-plished, being a great leader would be much less demanding, less difficult, and less valued. This is what makes alignment the single most important aspect of leading in today''s complex and fast-changing world. Whether you are a CEO, business owner, manager, or team leader, it is not only your greatest chal-lenge--it is your calling.
The what, the why, and the how are the three questions the Business Code addresses. Too often people are unclear about what they are contributing, are disengaged emotionally from why what they are doing it, and confused and fearful because they don''t really understand how they are supposed to do it. Extraordinary companies and teams are those in which the what, why and how are aligned. They have a clearly articulated and understood vision of what they want to accomplish. They know what the desired out-comes are and are able to innovate to continuously create and deliver a product or service that reflects and aligns with the customers'' expectations. Their people are emotionally engaged because they know why what they''re doing matters and the benefit it brings, believe in what is being created and care deeply about it, and have a shared sense of purpose and feel responsible for their contri-bution to making it happen. They are aligned on how to work together to achieve results. They have a plan or strategy.
More important, they know the steps in a process, system, or procedure and act in alignment with the values and beliefs of the organization or the team''s culture. For several reasons, why is currently getting the most atten-tion. There is widespread concern over the lack of employee engagement in larger companies. A second, less obvious reason is that customers buy products or services to fulfill individual needs. To succeed, a business has to align those working for it to the emotional aspirations of the customer. Today''s complex and fast-paced world leads businesses to focus on finding a solution that offers the best return. It''s much like getting someone''s mindshare. This often keeps them from seeing that there''s more they could do and benefit from.
Last, as businesses and consumers, we seek greater meaning from what we produce, sell, and buy, and the significance these have to our quality of life, social benefit, and environmental impact. This, along with the abundance of options, leads us to look for less complex choices and simpler yet more powerful solutions. Simplicity and alignment are not mutually exclusive. When all three components of what, why, and how are present, a company or team works well. Leave one out, and things become complicated. The alignment of the three is the true source of ex-traordinary performance. Place too much emphasis on one, and a leader will soon run into trouble. Therefore, leaders need to remember the importance of and pay attention to each.
This be-gins with clearly communicating the "what"--the vision, goals, and outcomes the organization must accomplish to compete and be successful, defining and leveraging the emotional motivators of "why," and articulating the "how." What: I often see leaders with a clear vision of what they want to accomplish. They articulate and share their vision and goals with the members of their company or t.