The Alignment Problem and Solution

Alignment is one of the top 10 problems of 20^th century management!

Alignment covers many problems arising from conflicts between the actual business and overlaid structures

We keep hearing about alignment problems. Alignment problems are caused because the business is not organized. Alignment problems arise from actual business change in results produced and capital utilized as performance solutions, which remain undefined and unorganized. Instead, the enterprise is organized, planned, directed, controlled, and reported through separate and distinct structures laid over the business. With every business change, rigid overlaid structures go out of alignment with the business. Many solutions are available supposedly to enable alignment. Many books have proposed alignment solutions. However, in spite of all of these solutions and books, alignment problems remain. The alignment solutions attempt to align organization and management structures with each other with nothing to align against. “Alignments with the business” do not actually define the business to align against.

Result-performance Management solves the alignment problem by organizing and managing the business

The various alignment problems are eliminated by organizing the business. Result-performance Management organizes and manages the business through one integrated result-performance business structure, which aligns all deployed performance solutions with the output results they produce. With R-pM, there is only one business structure and no alignment problem. Structures laid over the business are removed. One business structure is used for all organization, planning, directing, control, and reporting.

The Alignment Problem

The conventional enterprise faces many unsolvable alignment problems

We have such well-known alignment problems, such as the following, because of rigid structures laid over the business:

• Aligning the organization and the business. The enterprise organization structure is the fatal error of 20^th century management and the root of all alignment problems. We organize people, positions, politics, and power and fail to organize the business. The business is not organized, so the enterprise must be managed through other rigid overlaid structures. Reorganization addresses the problem by creating a new rigid organization structure that is closer aligned with the actual business, and the cycle is repeated
• Aligning the strategy with the business. This would not be a problem if the strategy was an outgrowth of the business, used to define the strategic future business. But the strategy is created separate from the business as an overlaid corporate plan, map, budget, investment analysis, etc and the business is expected to align with the strategy
• Aligning information systems with the business process. This would not be a problem if information system processing was integrated as part of the business process and if the business process was defined as a solution to produce specific results. But, the information system is separated out as technology. Separate information systems and monolithic business processes are laid over the business. The rigid business process is expected align with the technology in the rigid information system.
• Aligning outsourced processes and internal processes. Most enterprises outsource their management responsibility as well, and have no frame of reference to align in-house and outsourced processes, applications, and other solutions within the business. Input results and output results are not chained together and output results produced by the outsourced and in-house processes are not defined or managed as a set.
• Aligning tangible assets and intangible assets. “Intangible assets” are actually tangible, but “unmanaged” assets. There are two problems: 1) the failure to actually describe and manage “intangible assets”, and 2) the lack of a frame of reference to align all assets. Assets and all capital are utilized separately and not aligned and integrated for efficient and effective utilization.

The fundamental flaw in all alignment methods is the attempt to align solutions with solutions. There is no systematic and accurate method to align solutions with solutions.

Solutions can only be aligned with their output results, as part of organizing the actual business. Solutions that are utilized to produce the same result are then aligned in one business structure.

Therefore, the basic problem is not alignment. The fundamental problem is the failure of the 20^th century management to organize the business systematically to describe and manage results.

The Alignment Solution

R-pM aligns all performance solutions with input and output results

The solution to the alignment problem is provided by definition in Result-performance Management (R-pM). R-pM organizes and manages the business results and performance solutions as a matrix similar to a spreadsheet. Results to be produced are identified in the columns. The performance solutions to be utilized to produce results are described in the rows. The utilization of a specific solution to produce a specific output result is described in the specific cell. This provides the framework to align solutions with results. Strategies are defined by a strategic business structure to define strategic results and performance solutions to be developed and utilized at the strategic horizon.

Every in-house and outsourced performance solution utilized to produce a result is described and managed. R-pM chains results transformed in sequence through result relationships to have the input results. R-pM aligns all solutions with the output results produced by utilizing the solution. Business processes, information systems, human capital, facilities, management measures, and information are specific performance solutions aligned with each specific result produced. Solutions utilized to produce the same set of results are aligned, and can be integrated to work together.

All enterprise capital is defined as specific performance solutions to be aligned, integrated, and utilized to produce specific results

All enterprise capital is organized as business, human, facility, or management capital for professional support. There is a need to align supported performance solutions with results produced, integrate aligned solutions with similar solutions, and utilize integrated solutions to produce results. Therefore, capital is further organized as readiness, production, and information capital to bring similar solutions together for alignment and integration to be utilized to produce results. The business organization, human personnel, facility equipment, and management strategy are aligned and integrated as readiness capital to produce the results under the responsibility of an organization unit or manager. The business process, human capability, facility supply, and management tactics are aligned and integrated as production capital to produce a specific result. Business data, human knowledge, facility records, and management intelligence are aligned and integrated as information capital to be delivered or accessed easily to provide information and document results.

All of the solutions deployed to the results that they produce in the business structure are aligned on their performance row against the proper result columns, and thereby are properly aligned with other solutions utilized to produce the same results.

The business organization structure is a professionally-managed performance solution that aligns results and performance

The organization structure is not a management prerogative. The business organization is professionally-managed capital that organizes the business through one business structure. People or positions are not in an organization structure. Human capital is deployed as human personnel capital, where they provide a solution to manage or produce results. The monolithic re-engineered business process is replaced with business process solutions, which contain aligned manual and information system processing to produce the result.

All results are managed by result managers and all solutions are managed by performance managers to maintain alignment

All performance solutions are aligned and integrated by the result manager with business capital support to ensure that all solutions are utilized properly to produce the volume, value, and quality in results. All outsourced or business partner processes and other solutions have in-house performance managers responsible to ensure they are properly aligned, integrated, and utilized by result managers.

21^st Century Management leaves 20^th century problems behind

Result-performance Management (R-pM) eliminates the top ten problems and other costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

This entry was posted on Friday, March 28th, 2008 at 01:00 and is filed under:
Forums: Processes and Information Systems, Organization and Management, Business Change Methods, Strategy and Performance Management, Top Ten 20th Century Problems
Topics: Business Process Management, Conventional Management Methods, Information System Implementation, Organization Methods, Outsourcing Management, Result Management
You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.