The Organizational Alignment Handbook A Catalyst for Performance Acceleration Routledge Revivals Series

First published in 2012, in the same way that a well-defined approach is needed to develop an effective strategic plan, an equally well-designed approach is needed to support the alignment of your organization's structure, management concepts, systems, processes, networks, knowledge nets, training, hiring, and reward systems. Examining top-down, bottom-up, and core planning and execution processes, The Organizational Alignment Handbook: A Catalyst for Performance Acceleration provides a systematic approach for establishing the infrastructure needed to support a successful transformation and make your strategic plan a reality.

Bridging the gap between macro and micro approaches with a single unified theory, the book provides the understanding needed to assess the effectiveness of your organization?s current management system. It explains how to identify potential projects, introduce new practices, plan for resource allocation, and define and recommend decision governance. Identifying the capability constraints you must resolve in order for your company to thrive in an increasingly competitive business environment, the book explains:

• How the organizational master plan fits into alignment activities
• How strategic planning process and outcomes can be made part of the performance plan for individuals
• How to use controllable factors as the foundation for your master plan
• How to develop a set of vision statements that defines how your organization will function in the future

The management skills your organization currently possesses might be effective in today?s environment, but are they the skills needed to meet strategic objectives in the future? This book outlines a step-by-step approach for achieving organization-wide alignment of processes, applications, and systems, and to ensure acceptance of the results by all stakeholders. It includes examples of organizations implementing the strategies discussed as well as a review of the activities you need to follow to minimize the time it takes to reach your performance objectives today and in the future.

Overview
Why Organizational Alignment?
The Organizational Alignment Functional Model
     Key Implementation Challenges
     Gauging Effectiveness
     Now Ask Yourself These Questions:
Harnessing the Energy of Alignment: With Albert ("Butch") Einstein and Jack ("Sundance") Welch
     The Concept of Organizational Alignment
     Lessons from "Butch" Einstein
     Lessons from "Sundance" Welch
     Two Lessons from Butch and Sundance
Organizational Alignment Outcomes
Challenges to Implementation
     New Sources of Competitive Advantage
     Working This New Aligned Way
          Focusing the Alignment Strategy
          Bose Shows the Way

Alignment Considerations
Vision-Centered Organizational Alignment Models 
     Approach
     Outcomes
     Key Implementation Challenges
     Gauging Effectiveness
Macro-Alignment/Micro-Alignment and Culture
Change: Key Components
     Goals and Values
     Results Are What We Are After
     Key Implementation Challenges
     Gauging Effectiveness
Organizational Alignment Readiness and Culture
     Who Is Doing It?
     Outcomes
     Key Challenges
Organizational Alignment and e-Business Strategy
     Approach
     Outcomes

The Organizational Alignment Methodology
The Organizational Alignment Cycle
     Typical OAC Application
Organizational Alignment and Organizational Planning
     Approach
     Outcomes
Organizational Alignment and Organizational Change Management

Phase I. Strategic Planning
Introduction to Strategic Planning Phase
Organization’s Master Plan (OMP)
Setting Direction
Defining Expectations (Measurements)
Defining Actions
Approach to Developing a Business Plan
     Outline of a Typical Business Plan
Approach to Developing a Strategic Business Plan
Strategic Business Plans versus Strategic Improvement Plans
Developing a Strategic Improvement Plan
     Activity 1. Assessing the Organization
     Activity 2. Developing Vision Statements for each of the KBDs
     Activity 3. Developing a Set of Performance Goals.....
     Activity 4. Defining Desired Behaviors
     Activity 5. Preparing 3- to 5-Year Improvement Plans for Each of the Vision Statements
Creating the Strategic Plan
Annual Business Plan
Summary

Phase II. Processes and Networks
Introduction to Process and Networks Phase
     Defining Major or Core Processes
     Process Improvement Rules
          Process Improvement Approaches
          Major Networks
          Organizational Alignment and Knowledge Mapping
          Key Processes and Network Implementation Challenges
Summary

Phase III. Organizational Structure Design
Introduction to Organizational Structure
Design Phase
The Strategic Perspective
Restructuring Principles
Design Criteria
Realignment Principles and Design Criteria
     List of Activities to Help Define the Design
Measurement System
     Key Performance Indicators
Restructuring Approach
     The Roadmap for Organizational Restructuring
The Alignment Process
     Activity 1. Assessment
          Communication Maps
     Interface Study
     Organizational Restructuring Workshop
Activity 2. Analysis
Activity 3. Redesign
     The Operations and Tactical Perspective
     Purpose of the Perspective
     Approach for Designing an Organizational Structure
     Option 1. Functional
     Option 2. Vertical
     Option 3. Bureaucratic
     Option 4. Decentralized
     Option 5. Product
     Option 6. Customer
     Option 7. Geography
     Option 8. Case Management Network
     Option 9. Process-Based Network
     Option 10. Front-Back Hybrid
     Span of Control and Organizational Structure
     What Is the Correct Span of Control?
     Balancing Managerial Work Load
     Restructuring Challenges
     Restructuring Effectiveness
     Impact
Activity 4. Documentation
Activity 5. Implementation
     Key Implementation Challenges
     Summary of Organizational Restructuring

Phase IV. Staffing
Introduction
The Two Approaches to Solving the Skill
Mix Problem
Defining Skills Requirements
Outsourcing
Present Employees
Management Skills
Summary

Phase V. Rewards and Recognition System Design
Introduction to Rewards and Recognition (R&R) Phase
Key Objectives
Seven Major Types of R&R
     Financial Compensation
          Challenges with Commissions
          Challenges with Piecework Pay
          Challenges with Employee Stock Plans
          Challenges with Cash Bonuses and Gain Sharing
     Monetary Awards
     Personal Public Recognition
     Group Public Recognition
     Private Recognition
     Peer Recognition
     Organizational Awards
Implementing the R&R System
Summary

Phase VI. Implementation
Introduction to Implementation Phase
Organizational Change Management
     Murphy’s Laws Related to Change Management
The Seven Phases of the Change Management Methodology
     Phase I—Clarify the Project
     Phase II—Announce the Project
     Phase III—Conduct the Diagnosis
     Phase IV—Develop an Implementation Plan
     Phase V—Execute the Plan
     Phase VI—Monitor Progress and Problems
     Phase VII—Evaluate the Final Results
Change Management Tools
Area Activity Analysis (AAA)
     What Is Area Activity Analysis (AAA)?
Organizational Alignment and Communications
     Key Implementation Issues
     Gauging Effectiveness
The Management Cycle and Alignment
     Key Implementation Challenges
Organizational Alignment and Business Performance Management
     Outcomes
     Gauging Effectiveness
Outsourcing
     Key Implementation Challenges
     Open-Ended Questions

Epilogue
Appendix A—Definitions and Abbreviations
Appendix B—Some of the 1100 Plus Improvement Tools

About the Author—H. James Harrington

In Amy Zuckerman’s book, Tech Trending, Dr. Harrington was referred to as "the quintessential tech trender." The New York Times referred to him as having a "knack for synthesis and an open mind about packaging his knowledge and experience in new ways – characteristics that may matter more as prerequisites for new-economy success than technical wizardry." Well-known business management practices author, Tom Peters, stated, "I fervently hope that Harrington’s readers will not only benefit from the thoroughness of his effort but will also ‘smell’ the fundamental nature of the challenge for change that he mounts." William Clinton, past president of the United States, appointed Dr. Harrington to serve as an Ambassador of Good Will. It has been said about him, "He writes the books that other consultants use."

Harrington Institute was featured on a half-hour TV program, Heartbeat of America, which focuses on outstanding small businesses that make America strong. The host, William Shatner, stated, "You [Dr. Harrington] manage an entrepreneurial company that moves America forward. You are obviously successful."

Dr. H. James Harrington now serves as the chief executive officer (CEO) for the Harrington Institute and Harrington Middle East. He also serves as the chairman of the board for a number of businesses. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes. He has an excellent record of coming into an organization, working as its CEO or chief operating officer (COO), resulting in a major improvement in its financial and quality performance.

In February 2002 Dr. Harrington retired as the COO of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions, when Systemcorp was