Organizational systems reinforce your strategy by aligning people with your business processes. These include how you measure and reward performance, how you select, train and promote and how you orient people to your vision and strategy.
A strong organizational development system is the best way to align your people and processes. Best practices include:
Vertically aligned companies are more likely to be in the mode of continually enhancing their business processes. Why? Because people understand the Main Thing, understand the strategy and vision, and are empowered to help identify misalignments within the operating systems and processes of the company.
"Our people," says [Southwest Airlines] CEO Herb Kelleher, "are ingenious at finding ways to do their jobs more easily and more productively."1 "For instance, SWA baggage handlers found that simply loading bags with the handles out made loading and unloading quicker and easier."2 For Southwest Airlines such efficiency is crucial since planes do not make money sitting on the ground. The key, however, is that alignment allowed for the rapid dissemination of this process enhancement throughout the Southwest Airline system, reaching all of their many locations within hours.
1 Verespej, Michael A., as quoted in George Labovitz and Victor Rosansky, The Power of Alignment:
How Great Companies Stay Centered and Accomplish Extraordinary Things (New York: John Wiley & Sons,
1997):27
2 George Labovitz and Victor Rosansky, The Power of Alignment: How Great Companies Stay Centered and
Accomplish Extraordinary Things (New York: John Wiley & Sons, 1997):27
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