It’s a new year, and maybe you’ve resolved to become healthier. To support this goal, one strategy would be to buy fruits and vegetables when you shop. But what if you bought only junk food? Obviously, your strategy would not support your purpose, and you would fail to achieve your goal.
The same is true for your organization. If you want to be successful in 2021, you must align your strategy with your purpose.
Purpose is what your organization is trying to achieve. Strategy is how you will achieve it.
Among successful organizations, 64% build their budgets around their strategy.
Your purpose is the unchanging beacon that guides you forward. Everything you do as an organization should point toward this purpose.
Strategy includes the products and services you offer, the market you seek to serve, and defining your competitive advantages over your rivals.
Now ask yourself How well does our strategy support our purpose? Then reflect on your organization’s structure and capabilities and consider how they support your strategy.
For example, if your strategy is to outshine your rivals with stellar customer service, is this reflected in your service standards, process of accountability to standards, training, and resources budgeted for the front-line staff and their supervisors? Or do you operate short-staffed to save money, resulting in overworked and grumpy employees who are unlikely to offer great customer service? Without an effective strategy and resources to achieve the purpose, you will fail.
There is ample proof that strategic alignment pays off. Among successful companies, 77% report that their operating mechanisms support their strategy, and 64% build their budgets around their strategy. It’s no surprise 60% of companies that fail to achieve their goals don’t even connect their strategies to their budgets.
Let’s make 2021 the year that we align our resources with our goals.
Sherri Miller, Founder and CEO
Center For Extraordinary Success