Revenue and/or Profitability Decline

Date: 2015-10-07; view: 432.

Cultural Erosion and Morale Problems Appear

Reactive Spending and Duplicity of Initiatives Occur

When strategy is misaligned, company divisions can drift into a self-directed mode that stray further and further from corporate goals. Reactive spending and duplicity of initiatives might occur as a result of lackluster; quarterly or annual results being posted. In other cases, it could be part of a chain reaction, due to inter-dependent initiatives fighting for limited resources. These unsynchronized initiatives begin to impact each other and desperation sets in, creating a vicious cycle of time and resources being consumed.

We've already mentioned the chaos that occurs with strategy misalignment. This chaos takes a toll on leaders and workers of the organization who share in a profound dislike of organizational chaos. As a result, morale suffers. If you notice an erosion of the corporate culture and morale problems, consider that your strategy may be misaligned.

The bottom line impact of strategy misalignment inevitably falls to the bottom line. While revenue and profitability can decrease for a variety of reasons, most of these reasons trace back to misalignment. Profitability suffers as a result of any of the symptoms presented here, such as when new services or products are delayed in roll-out because the initiatives to bring them to market are unsuccessful.

How to Address Strategy Misalignment:

Just as it takes time and effort to see results from strategy, re-instilling strategy alignment and correcting misalignment requires time, work and discipline. The situation didn't occur overnight, and won't disappear overnight either. Bi-directional planning (bottom-up and top-down) and appropriate plan governance can align corporate strategy and prevent the symptoms that can negatively impact an organization.

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