Beyond Control
Managing Strategic Alignment through Corporate Dialogue

Introduction ix

A new approach x

The research base xi

Strategic pull and operational push xii

Strategic alignment and the corporate black box xii

Operating arena xiii

Corporate dialogue xiii

The executive dialogue centre xiv

Moving beyond control xiv

Layout of the book xv

Flowchart xviii

Acknowledgements xix

Part I: Moving Beyond Control: A New Concept 1

1. Strategic Alignment: Is a New System Needed? 3

The profitability equation 3

Moving beyond control 4

How things can go out of control 5

How problems were caused by the operations being ‘black boxed’ 7

Opening up the black box 11

Lessons learned 12

2. The Corporate Black Box: Understanding History 13

Looking back 13

A new approach 33

Lessons learned 35

3. The Operating Arena: Aligning the Space 37

The operating arena explained 37

A dynamic space 39

The theory of strategic alignment 43

Measuring alignment of capabilities 45

The organizational capability scan 46

A management style for strategic alignment 53

Lessons learned 55

4. Leadership Beyond Control: Creating the Push 57

The ideal leadership 57

Aligning strategy and execution 59

Participation: Leading from the middle 61

Combining power and authority:

Creating a culture of respect 63

Managing by strategic pull and operational push 64

Measuring the capacity for alignment 66

Lessons learned 74

Part II: Creating Alignment: The Continuous Dialogue 75

5. The Corporate Dialogue: Activating the Agenda 77

Measuring, matching and managing 77

Measuring 79

Matching: Creating the alignment agenda 83

Managing 86

Lessons learned 91

6. The Executive Dialogue Centre: Installing the Toolbox 93

The executive dialogue centre 93

Ten reasons for establishing an executive dialogue centre 97

The process of managing beyond control 103

Lessons learned 105

7. The Fundamentals: A Mindset for Pull and Push 107

Four pillars 107

Managing complexity is about letting go 108

Individual freedom supports commitment 114

Transparency and accountability are assets 115

Shared uncertainty reduces fear 117

Lessons learned 119

Part III: Managing Alignment: Leading, Rewarding and Reporting 121

8. The Chief Executive Officer: Believer-in-Chief 123

Intent: Being an internal and external role model 124

Objectives: Goals that hit home and please people 133

Resources: Making managers unlock people’s potential 136

Interaction: Taking charge of communication 137

The corporate dialogue process 141

Lessons learned 145

9. The Chief Financial Officer: Guarding the Equation 147

Intent: Creating total clarity 148

Objectives: Linking score with capabilities 152

Resources: Focus on facilitation and reality 155

Interaction: The conscience behind the data 155

Lessons learned 157

10. The Human Resource Director: Aligning Talent 159

Intent: Giving the right people the real story 161

Objectives: Fighting for meritocracy 170

Resources: Being committed to engagement 173

Interaction: Fighting for openness 178

Lessons learned 182

11. The Communications Director: The Coherent, Consistent Storyline 185

Intent: Making sense of strategy through interaction 187

Interaction: Managing the ecosystem of dialogue 192

Objectives: Enabling individual agendas to be aligned with the strategic alignment agenda 196

Resources: Infrastructure as an enabler for consistency 196

Lessons learned 197

Epilogue 199

Appendix I: Gap Analyses 201

Appendix II: Campaign Invitations and Protocols 203

Appendix III: A Case Study on Measuring – ABN AMRO 205

Appendix IV: A Case Study on Matching – Numico 208

Appendix V: A Case Study on Managing – Sara Lee/DE 211

Appendix VI: How Aligned Is Your Company? 215

Notes 217

Index 221

ABOUT THE AUTHORS

FRED LACHOTZKI (RIGHT) has thirty years of experience as manager, president and nonexecutive director in E e, the USA and the Far East. As a Professor of business policy at Nyenrode University, he has been teaching strategy formulation and execution for many years. He has served or is serving on a number of boards in an executive as well as a non-executive capacity, both nationally and internationally.

ROBERT NOTEBOOM is an independent strategy consultant, prior to which he was Associate Director Customer Value Management at PricewaterhouseCoopers. He is also lecturer for e-Business Strategy at Nyenrode University, the Netherlands.

Both authors have been involved in initiatives to help global companies focus their alignment via 'digital dialogue'. Since its founding in 1998, MeyerMonitor, a management consulting company dedicated to improving organizational effectiveness, has applied the models and methodol gies on which this book is based in various projects, serving many large multinational companies and generating a wealth of positive research data.