Engagement and alignment

‍Engagement and Alignment behind a clear Vision, Mission and Plan– Why YouShould Care

In today’s competitive business landscape, companies of all sizes and industries are grappling with low productivity and missed growth targets. A significant factor contributing to these issues is a lack of clarity in their purpose, vision, and strategy. The complications are manifold – do any of these seem familiar to you?

• Teams are stuck in a cycle of firefighting immediate issues, making short-term decisions without a long-term perspective.
• Engaging in duplicated efforts that waste resources.
• Priorities become confused, meetings unproductive, and departments pull in different directions.

Moreover, the focus on in-year targets and KPIs without aligning to the company strategy exacerbates these problems. Statistics reveal the severity of the issue: 78% of employees lack clear direction, and a staggering 80% of strategies fail due to poor execution. This disarray highlights the critical need for strategic alignment, ensuring that every action taken is in concert with the company's overarching goals. In this article, we explore why aligning business activities to the strategy and vision is essential for overcoming these challenges and driving sustainable business success.

The Importance of Strategic Alignment

How can organisations ensure that their staff are all working towards the same goal to achieve their ambitions? The answer lies in strategic alignment. By aligning all activities towards the company's strategy and measuring people on KPIs that drive towards a unified purpose, organisations can achieve remarkable results.

‍‍At Mission Inc, we have identified five key steps to driving strategic engagement and alignment:

Define Purpose, Vision, and Mission at the Organisational Level

Build Measures of Effect that Align All Activity to a Unified Purpose

Define a Governance Cadence that Keeps Us on Track

Enable Agility through Delegated Authority and Autonomy

Ensure That People Are Equipped with the Skills to Succeed

First, we need to define some terms so we’re all speaking the same language.

Purpose: Why do we exist as an organisation? (Transcends what we do)

Vision: Where are we going as an organisation? (What are we going to achieve over a time period, e.g., five years)

Mission: What are we going to do to get to our vision? Task(s) and unifying purpose (What are we doing this year)

Why Should You Care? When a company is strategically aligned, meaning its employees are all working towards a common vision and their objectives and measures of success support that vision, the business impact can be profound. Here are some key benefits and impacts of such alignment:

Increased Efficiency and Productivity

When everyone in the organisation understands the common vision and their role in achieving it, efforts are more focused and coordinated. This reduces redundancy and wasted effort, leading to higher efficiency and productivity. A study by Harvard Business Review found that companies with high strategic alignment are 72% more efficient in their operations. This increase in efficiency can translate to significant cost savings and improved productivity.

Enhanced Employee Engagement and Morale

Employees who understand and buy into the company's vision are generally more motivated and engaged. They see how their work contributes to larger goals, which can increase job satisfaction and morale. Gallup research indicates that highly engaged employees are 21% more productive. Additionally, companies with engaged employees outperform those without by up to 202% in terms of profitability. The same research shows that organisations with high employee engagement experience 41% lower absenteeism and 59% less turnover, which can save millions in recruitment and training costs.

Improved Decision-Making

Strategic alignment ensures that decisions at all levels are made with the company's overarching goals in mind. This leads to more consistent and effective decision-making, as choices are guided by a shared understanding of what the company aims to achieve. According to a study by PwC, organisations with strong alignment between strategy and execution achieve 60%better decision-making outcomes. This improvement can lead to faster implementation of strategic initiatives and better overall performance.

Better Collaboration and Teamwork

When employees are aligned with a common vision, collaboration improves. Teams work together more effectively because they share a clear understanding of what they are working towards, fostering a culture of cooperation and mutual support. Research by the Institute for Corporate Productivity (i4cp) indicates that organisations that promote collaborative working are five times more likely to be high performing. Better collaboration reduces project delays and increases innovation, directly impacting the bottom line.

Stronger Customer Focus

A company with strategic alignment often has a clearer understanding of its value proposition and how to deliver it to customers. This can lead to better customer service, higher customer satisfaction, and increased loyalty. Deloitte found that customer-centric companies are 60% more profitable compared to companies that are not focused on the customer. Strategic alignment ensures that all parts of the company work towards enhancing customer satisfaction and loyalty. Greater Innovation When employees understand the company's strategic goals, they are better positioned to contribute ideas that align with these goals. This can lead to more relevant and impactful innovations, as employees are thinking about how to advance the company's vision. Financial Performance Strategic alignment often translates into better financial performance. Companies that are strategically aligned tend to be more efficient, make better decisions, and execute their strategies more effectively. This can lead to increased revenues, reduced costs, and improved profitability. McKinsey reports that organisations with high strategic alignment innovate more effectively, being 2.2 times more likely to be top quartile innovators in their industry. This leads to a higher introduction of successful new products and services, driving revenue growth.

Adaptability and Resilience

Aligned organisations are better able to adapt to changes in the market or environment. Because everyone understands the core objectives and vision, they can pivot more quickly and effectively when needed, maintaining a competitive edge. Companies that are highly aligned and agile can achieve up to70% faster adaptation to market changes, according to a study by the Boston Consulting Group. This adaptability can provide a significant competitive advantage.

Clear Metrics and Accountability

Strategic alignment involves setting clear objectives and measures of success. This clarity helps in tracking progress, holding people accountable, and making necessary adjustments to stay on track with strategic goals. Organisations with clear objectives and metrics are four times more likely to achieve their strategic goals, as found in a study by the Balanced Scorecard Institute.

Conclusion

Strategic alignment is not just a buzzword - it's a crucial element for any organisation aiming for long-term success and sustainability. By aligning purpose, vision, and mission with daily activities and measuring success appropriately, companies can drive efficiency, enhance employee engagement, improve decision-making, foster collaboration, maintain customer focus, spur innovation, boost financial performance, adapt quickly to change, and ensure accountability.

At MISSION inc., we are committed to helping organisations achieve this alignment through our structured approach and expertise. By prioritising strategic alignment, companies can ensure that every team and department works harmoniously towards common objectives, driving sustainable growth and long-term success. Get in touch today to find out more!