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HI! MANAGERS

Align your company and your systems

Developing a competitive strategy for your organisation is important. Once the external environment is understood and the strategy defined, often the more challenging task of aligning the organisation with the strategy begins.



 As a manager, you need to actively engage your team in the strategy. Words are important, but your daily actions mean much more. Fortunately, we do have methods to systematically guide organisational alignment. Today, I would like to discuss the congruence model.

The congruence model has four elements: critical tasks, people, culture and formal organisation. Each of these elements need to be considered to effectively align the organisation. Together, they form the system that reinforces the strategy.

Think of the model as a cross. The vertical axis is referred to as the  "hardware" axis. At the top, we have "critical tasks". At the bottom, we have "formal organisation". This axis represents the organisation's formal business processes and metrics. Conversely, the horizontal axis is referred to as the "software" axis. On the left, we have "people" and on the right, we have "culture". This axis captures the values and competencies of the organisation. Each of these elements of the cross interacts with the others.

By understanding and aligning these elements, we can embed the strategy in the organisation.

Critical tasks: You need to specify the key objectives that underpin the strategy. Then, workflows and business processes need to be adjusted accordingly.

People: What are the skills, competencies, attitudes and personal qualities of the organisation? How can they be used to effectively implement the strategy? Or do they need to be adjusted?

Culture: This may be the most complicated element to understand or change, but it may also be the most important. It is the fuel for sustained competitive advantage.

But what is culture, or rather, how does it show itself? Culture is displayed in the norms, values, communication networks or informal power structures.

For example, who do people really consult when they want to get something done? It may not be formal organisation.

Understanding and using the culture to drive organisational behaviour can be very effective. Adjusting it will take time and a clear imperative for change.

Formal organisation: This is the formal organisational structures, reward systems, information systems and human resource management systems. While changing these structures and systems can be straightforward, it should only be done after considering the other three elements. 

A brilliant strategy is irrelevant if it is not implemented effectively. The congruence model can be a systematic way of aligning your company or team around a strategy.


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