Alignment’s role in strategic implementations. Isn’t it interesting how important alignment is across all of life?
Think into two common definitions of alignment.
1) arrangement in a straight line, or in correct or appropriate relative positions.
“the tiles had slipped out of alignment”
2) a position of agreement or alliance.
“the uncertain nature of political alignments”
In strategic thinking, we’re focusing on correct or appropriate relative positions and positions of agreement or alliance.
In blue ocean strategy implementations, we focus on reconstructing market boundaries and value innovation as a path toward unlocking vast oceans of uncontested market space.
Alignment of value, profit, and people is required for these implementations to be realized and sustainable.
What is meant by the alignment of value, profit, and people?
In blue ocean strategy terms, these are strategy propositions. They constitute organizational frameworks that keep strategic implementations in alignment.
Without sufficient value innovation, profits and people will be sufficient and happy for a short period.
Profits may be high but without value innovation and motivated people, you have a cash cow that will spin off cash in the near term but as an offering with no path to value innovation and people to move it, it’s a temporary win.
Happy people who aren’t offering products and services that deliver value and profits won’t be happy as they begin to be laid off due to lost sales and bitter customers.
Alignment is absolutely necessary.
Let’s take a look at the graphic from Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Alignment’s Role in Strategic Implementation.
In traditional strategic implementations or business plans, the focus is on lowering costs or lowering value. Occasionally, increasing value and increasing cost and margins will also be the focus.
In blue ocean strategy implementations, value to customers increases, costs to produce and deliver the service or offering become lower increasing profits, while simultaneously, people are positively motivated to support and implement the strategy.
When alignment doesn’t exist, blue ocean strategic implements just don’t happen. Don’t be mistaken, there are incredible companies that have grown vast audiences of blue ocean uncontested market space without ever having read the book.
So why does any of this matter if that’s the case?
The reason is simple. Strategic implementations are hard. Changing the culture of a company is hard. Growing market share is hard. The chances for success are enhanced if one follows a road map for implementation. Blue ocean strategy frameworks and processes allow for the use of a road map. Alignment’s role in strategic implementation should be of great importance to your product or offering roll out.
If you feel a map to new customers would be helpful to your company or new offering, consider a complimentary chat with Sherman Mohr, The Blue Ocean Strategist. He’s an Insead Blue Ocean Strategy Institute Certified Blue Ocean Strategist.
He serves as a team member with Damson.Group on the Blue Ocean Strategy team.