Organizational alignment is bringing the organization's overall success vision and how its executives and other stakeholders contribute to achieving those objectives in harmony (Sousa et al., 2014). A clear and aligned business model emphasizes the importance of teamwork and clear communication. Most people in any business are aware of the short- and long-term company strategy, procedures, and goals when there is organizational alignment. Aligning organizational strategy and structure may aid in focusing resources on important goals. This high level of organizational cohesion is achievable with careful planning, open communication, and thoughtful management. Businesses usually use it to achieve results that are urgently needed, but it can also be focused on longer-term corporate objectives. This paper explains the reasons why there needs to be an alignment of the organizational values, purposes, goals, objectives, and strategy, how an understanding of environmental issues, for instance, unchangeable structure, government regulations, and limits of personnel and finance have an impact in making strategy and finally address how making a strategy can perhaps be a unifying process building community, identity and the organizational commitment in the organization.
Once management teams, as well as business functions, are successfully tuned to a single frequency, they come together to generate a potent force of motivated, dutiful individuals that can produce considerable improvements in organizational performance. According to research published by McKinsey & Company found that B2B companies who employ organizational alignment can enjoy substantially faster increases in revenue and profit. (McKinsey, 2023) When there is no organizational alignment, the enterprise architecture may become disorderly and useless. Operational challenges might force teams and departments to work alone, which is ineffective and unproductive, even though long-term objectives are obvious and apparent.
For instance, the business may want to boost sales by a certain amount in the next quarter. The goal has been stated, opinion leaders have endorsed it, and team leaders are informed of their contribution. Without systematic alignment, however, many corporate functions and workers could devise a redundant or ineffective strategy with alternative outcomes. The production department may experience hardship and discomfort because of the sales department's decision-making process. This could also affect the service division's capacity to meet client needs and expectations. Therefore, alignment is essential in today's fast-paced business world (Sousa et al., 2014). Alignment within a company also minimizes room for error. Additionally, it promotes a culture in which team members are required to comprehend, assess, and participate in initiatives, successes, and everyone's needs. Without organizational alignment, companies would risk wasting a lot of time and money on pointless meetings, misunderstandings, and other things.
"An organization's managers must comprehend the environment in which they work. This environment includes the factors within the company and those outside the company. These are the micro and macro environmental factors."
A business strategy refers to an organizational plan that helps a business develop and implement strategic goals designed to attain its objectives. A clear understanding of environmental issues, including government regulations, personnel and finance limits, and unchangeable structures, is crucial in developing a business strategy (Edwards, 2014). The environment is the collection of external factors and circumstances that can affect any organization. Every business decision, like increasing prices or launching a marketing campaign, affects the environment. For example, in the case of government regulations, a business must consider the prevailing government regulations to understand what strategy they need to develop for the business. For example, a change of environmental regulations by the government will mean that a business needs to develop a strategy that would correspond to the environmental regulations that would have been set by the government (Edwards, 2014). In addition, the organization's personnel and finance limits will determine the projects that the business intends to outline its strategy for the financial year.
An organization's managers must comprehend the environment in which they work. This environment includes the factors within the company and those outside the company. These are the micro and macro environmental factors (Burgelman, 2020). These factors have an impact on the making of strategy in the organization. There are several causes for this. First, the environment provides a company's resources to generate its goods and services. Second, a company's surroundings may present both possibilities and challenges. Opportunities are events and trends that present opportunities to increase the company's performance.
On the other hand, threats are trends that could negatively impact an organization's performance. Third, the environment influences the numerous strategic decisions leaders must make to lead their companies to success (Edwards, 2014). For example, an organization's goals are frequently severely constrained by the environment. When a downturn or many new rivals enter the market, it may be challenging for a company to achieve its goal of increasing annual sales.
Making a strategy can be a unifying process, building a community, identity, and organizational commitment. Without a plan, you are essentially operating in the dark. Although you know there is a community somewhere, you need help comprehending, directing, or assessing its success. You may optimize the positive effects of your community by developing a well-thought-out strategy that will benefit both the community and your company. Making a strategy helps a company understand what the community needs, which will help address the unique issues the community is facing. In addition, developing a strategy within the organization helps the business to clear objectives that make the business distinct from other businesses. With an established strategy, the business will be more geared toward attaining the objectives set out in its strategic plan (Gallego, 2018).
