Aligning Organizational Units to the Strategy (Balanced Scorecard)

The alignment of organizational units is a very important part of the overall strategy execution process.  The corporate units should be aligned to the corporate strategy. 

  • All shared services of IT, HR, Finance, and others to be aligned to the corporate strategy
  • The board of director strategy maps needs to be aligned to the corporate strategy
  • The business unit’s strategies and corporate strategies need to be aligned
  • Corporate shared services units and SBU department strategies need to be aligned
  • Key customers to be aligned
  • Key suppliers and Alliances to be aligned to the business unit strategies
  • The corporate planning process and integrated business planning process of SBUs need to be aligned

The following diagram shows the linkages of alignment opportunities. 

The organizational units aligned in different ways depending on the type of business.  The corporate can be a Passive Role like a Holding Company or it can be an Active Role like an operating company.  The below diagram shows the type of organizations as a sample which can be of different types.  Mapping this can help identify the alignment expectations of the organizations. 

Based on the alignment plan of the organization the overall alignment requirements can be defined after identifying the misalignments and gaps.  

High-level steps in defining the strategic alignment:

  • Define the type of organization and alignment expectations
  • Strategic alignment of corporate to SBUs for objectives, initiatives, and business processes
  • Strategic alignment of corporate units to business unit departments
  • Strategic alignment of board
  • Strategic alignment of customers, vendors, and alliances
  • Define misalignments and arrive at an alignment plan
  • Identify the strategic initiative to perform the alignment activities
  • Review during the strategy reviews about alignment progress

fruiStrategy ® EDGE enables you to define organizational alignments between corporate, SBUs, shared services, SBU departments, business processes, key customers, vendors, and board.  The system will help you to define the gaps and how the gaps can be aligned through a plan of action.

fruiStrategy ® EDGE empowers you to execute strategies consistently by linking strategy plan to strategy execution and aligning the whole organization’s actions towards the strategic direction. You can establish a robust strategy execution process empowered by plug-and-play modules to achieve overall organizational transformation in a systems driver approach.

Please contact Shaik Abdul Khadar, Strategy Management Expert at [email protected] or +917799798333 for a quick demo or more information.