ALIGNMENT MANAGEMENT SYSTEMS (AMS)

When companies are small, they are in One Business. They target One Market. They sell One Product. There is One P&L. Everyone probably sits in One Office. (We like to joke that when everyone can go to lunch in One Car, keeping everyone—and everything—aligned is pretty easy.)

However, as companies grow, the complexity of creating alignment scales exponentially.

And the bigger your organization, the more complex it becomes.

For example, as companies grow, they create divisions. There is only One Problem: divisions—by definition—divide.

In addition, as companies grow, they expand geographically. Most companies follow a predictable pattern. They expand from local to regional to national to multinational and ultimately become truly global companies. However, the broader your geographic footprint, the harder it is to create alignment.

Organizational alignment does not happen automatically ... it is something that must be intentionally managed.

The alignment management SYSTEM (AMS)

To keep everyone—and everything—aligned, organizations need a dynamic Alignment Management System (AMS).

But most organizations don't have one.

In the classic Harvard Business Review article, “Mastering the Management System,” professors Robert S. Kaplan and David P. Norton describe the need for a management system:

“In our experience, however, breakdowns in a company’s management system, not managers’ lack of ability or effort, are what cause a company’s underperformance. By management system, we’re referring to the integrated set of processes and tools that a company uses to develop its strategy, translate it into operational actions, and monitor and improve the effectiveness of both.”

There are dozens of different management systems. Some of the most popular ones include:

• The Balanced Scorecard, developed by Harvard Business School professors Robert S. Kaplan and David P. Norton
• Objectives and Key Results (OKRs), developed by Andy Grove at Intel
• The Rockefeller Habits, developed by Verne Harnish
• The Entrepreneurial Operating System, developed by Geno Wickman and Don Tinney
• The Working Together Management System, developed by Alan Mulally
• Holocracy, developed by Holocracy One
• The Top Gear System, developed by SHIFTPOINTS
• And many others

Each of these systems can be effective, but we advise clients to pick One of them. When a company adopts One System as your Alignment Management System, it provides a common language, which speeds communication and reduces friction.

Does your company have One Alignment Management System?

alignment management software 

Software can help companies create strategic alignment at scale.

Here are some of top vendors:

• AchieveIt - Focused on helping large enterprises leverage the Balanced Scorecard.
• AlignToday - Focused on small and mid-sized organizations using the ScaleUp methodology.
• Cascade Strategies - Focused on strategic planning and execution and team alignment.
• ClearPoint Strategy - Focused on helping large enterprises and government agencies leverage the Balanced Scorecard.
• Envisio - Focused on strategic planning and execution for government education, healthcare, and nonprofit organizations.
• Inspire Software - Focused on integrating strategy management and human resources.
• OnStrategy - Focused on strategic planning and KPI management for small to mid-sized organizations.
• Perdoo - Focused on OKR management and strategy execution.
• Profit.co - Focused on OKR management and strategy execution for large enterprises.
• Quantive (formerly Gtmhub) - Focused on OKR management and strategy execution for large enterprises.
• Rhythm Systems - Focused on helping mid-market companies optimize their operating rhythm.
• Spider Strategies - Focused on helping large enterprises and government leverage the Balanced Scorecard.
• StrategyWorks - Focused on strategic planning and execution.
• WorkBoard - Focused on OKR management and strategy execution for large enterprises.

These platforms vary in features such as strategic goal tracking, KPI integration, team alignment tools, and reporting capabilities. Selecting the right software depends on your company's specific needs, such as the size of the organization, level of customization required, and integration with existing systems.