In the early stages of a company, a common pitfall is a vague or ambiguous mission. A plethora of ideas, initiatives, and projects can pull a burgeoning business in many different directions, resulting in a convoluted vision. Even with the best of intentions, a business without refined direction will overextend its workforce and resources.
For that reason, it is imperative for emerging companies to ensure all elements of a business are arranged in such a way to best support the fulfillment of its clearly defined, long-term mission. Through use of the business alignment model, leaders can arrange a company in a way that optimally syncs work, structure, and resources to the designated purpose of the business.
The Case for Business Alignment
Numerous startups(opens in new tab) have seen the consequences of a lack of mission clarity. When the goal for a company is unclear, too much passion, too many visions for the business, and too many expectations can take over and lead to failure.
Kiko, a calendar app offering API integrations with other tools, was one such example. The user-friendly app was particularly helpful to business professionals and event organizers. Yet, it folded after just three years. The reason for the failure, according to one of the founders, was that the team wanted to work on various ideas and plans at the same time, diverting their attention from their main vision. The CEO admitted that the team wasted time on unnecessary projects.
The problems created by an unclear or unenforced business purpose aren’t limited to startups. According to a study by MIT Sloan Management Review, only 28% of executives and middle managers responsible for executing strategy could list their company’s strategic priorities — with this percentage decreasing further down the reporting line. Without that clarity, a business is likely to go in many different directions, most of them away from what should be the company goal.
LG is one example of a larger business detrimentally impacted by a lack of focus. In 2021, LG opted to close its global mobile phone business after over a decade of losses totaling billions. The South Korean electronic giant cited the need to concentrate resources on its growth areas. Media pundits and product disagreed, citing a lack of vision and how mobile phones fit into the company’s larger goal that caused the failure.
Ultimately, when you water down your business and lose focus on the value it provides customers, you lose the opportunity to resonate with your target audience. This is where the business alignment model comes in. BAM can serve as a valuable tool in ensuring the company is directing its resources in a way that will bring the business to its full potential.
What Is the Business Alignment Model?
BAM refers to the method that helps an organization arrange all elements of a business — including the market strategy and the way the company itself is organized — to best support its long-term purpose. In a strategically aligned organization, all departments, projects, decisions, and functions contribute to the fulfillment of the organization’s mission, vision, and objectives.
BAM works to ensure that four criteria are fulfilled:
Benefits of BAM
Strategic alignment through the BAM is important to the success of a new business for several reasons. It makes sure that everyone in, or joining, the organization is on the same page and working toward the same business goals, effectively enhancing collaboration across departments.
Especially in a time where talent and budgets might be tight, BAM ensures that resources are optimally aligned to the tasks that are truly integral to executing the company’s vision.
Lastly, BAM’s emphasis on metrics helps generate accurate reports. In a strategically aligned organization, employees chart their progress against defined targets and will regularly report on their efforts. This data can help businesses make educated decisions about their practices and make changes as necessary.
How to Put Together a Business Alignment Model
Business Alignment Model(BAM) is constructed by creating a business plan flow chart that starts broad and cascades into more granular components. At Simply iCard, we understand the importance of effectively aligning your business goals and strategies. Our Business Advisory service goes beyond traditional consulting, as we work closely with our clients to provide the necessary resources, strategies, and tools for implementing real digital solutions that foster growth.
As an example, let’s create a BAM for a new mountain bike company with a brick-and-mortar location and a fledgling ecommerce initiative.
Now, when proposing new ideas for the company, it’s clearer what might align and what might fall outside the business’ overall goal. While the projects, tactics, and broad initiatives will likely be changing as each one is achieved and the business grows, strategic objectives are less likely to change. And barring a business pivot, mission and vision shouldn’t be changing at all.
Bottom Line
In the ever-evolving business landscape, the importance of strategic alignment cannot be overstated. At Simply iCard, our Business Advisory service provides the expertise and guidance needed to ensure your organization stays focused on its mission and vision. Trust us to guide you towards strategic alignment and unlock your business’s full potential.
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