Organizational Realignment

Organizational Realignment is the process of changing the way a company does business. There may be multiple reasons for which management of an organization decides to undertake realignment - from underperformance to stagnation. It is the responsibility of the leadership to make sure that the various parts of the organization are aligned for it to function properly.

Successful Organizational Alignment
The parts of the organization that need to function smoothly:

• Work Processes: Work processes are the daily tasks employees perform to create and deliver value. To create results, leaders must identify and prioritize the work processes that create marketplace differentiation.
• [[Structure & Governance: An organization's structure and governance must be shaped in a way that allows you to deliver on your differentiating capabilities and implement your strategy. Rather than consider structure and strategy as two separate issues, leaders should focus first on strategy and then structure the organization to support it.
• Information & Metrics: Information systems should be designed to ensure that the right information - that which allows leaders to solve critical problems or make decisions that impact strategy - gets to the right people at the right time. Metrics should provide data that helps leaders align their business model with organizational priorities.
• People & Rewards: This system should be aligned to motivate employees and maximize their potential while supporting the organization's strategic goals. For example, an organization with a strategy that focuses on creating differentiated customer experiences may decide to provide extra training to their public-facing employees.
• Continuous Improvement: To keep pace with changes in the marketplace and within the organization, an organization must have a system to continually review and realign all systems within it. Leaders should keep a "big-picture view" of the organization, frequently examining whether their organization choices are optimally aligned to achieve their goals.
• Leadership & Culture: The beliefs, behaviors and norms within an organization should be cultivated to contribute to differentiation and value. Leaders can achieve this by modeling the desired behaviors, basing new priorities and programs on those behaviors and aligning other organizational choices in way that supports the desired culture.

When to Consider an Organizational Realignment “Sometimes managers and lower-level executives feel the pressure to initiate a redesign in their area simply so they don’t seem complacent in comparison to others. When considering an organization redesign, identify your motivations to make sure that it’s the right move, at the right time." - Reed Deshler

A skilled leader must understand what signs signal that their organization's choices are no longer aligned. Below is an illustration of the six signs that an organization may be in need of realignment

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By monitoring key performance indicators and industry trends, leaders can determine if the time is right to realign their organization. Identifying the right time to act can be the difference between being the next Amazon…or the next Blockbuster.