Board, CEO and Organizational Alignment

Alignment is the process of creating momentum in the right direction. To be most effective, the relationship between a board and the management of an organization should be one of mutual respect and alignment, so together they can best serve both the sustainability and growth of the organization. By working together to mesh and align the strategy, goals, tactics and cultural values, the board and management will be in a strong position to clearly articulate the organizations vision of the future to all stakeholders.

The purpose of "Board, CEO and Organizational Alignment" is to clearly and effectively focus the efforts, energies and strategies of the organization around a common direction, operating culture and business approach that supports both sustainability and growth.

Organizational alignment occurs when strategy, goals, tactics and cultural values are mutually supportive, and when the systems and people of an organization are linked and compatible with each other. Key objectives should be derived from the organizations vision, strategy and goals and supported by management practices. Day-to-day activities and behaviors should be consistent with the vision, strategy, goals and values of the organization. The goal of alignment is to foster the consistency and compatibility which encourages people throughout the organization to devote their collective energy toward accomplishing results.

Before the subject of organizational alignment is addressed, it is appropriate to assess the current board-management relationship (alignment) using the following questions. Are there any current obstacles which are preventing the board and management from working together successfully? If yes, how and when will they become a non-issue? What types of issues do the board and management find difficult to address? What issues do the board and management handle successfully? How well do the competencies and skills of the board members and key managers align with the strategy and oversight needs of the organization? Are we operating in concert for the overall good of the organization? If not, why not? What is the most important contribution the board can make in the next 6 - 12 months? What is the most important contribution management can make in the next 6 - 12 months? Are these contributions aligned with the strategy of the organization? This mutual review can be handled internally or conducted by an outside consultant to assure increase candor and confidentiality.

Board-Management alignment can best be attained, when the Board Chairman (or designated representative) and CEO regularly schedule opportunities to work together on both board-management and organizational alignment issues outside of scheduled board meetings. These types of informal meetings allows for an open process for working together, and come to a mutual understanding of their relative roles, boundaries and responsibilities. It also allows the Board Chairman and CEO to create together, alignment of the board and organization, greatly limiting any unpleasant surprises or unintended consequences in the decision making process.

These informal meetings can also be used to bring in other key management leaders of the organization to better understand and review alignment issues. The more involved key managers are in the alignment process the higher the chances are the organization will ensure the board and management team have a clear understanding of the organizations future.

Because much of the alignment work has been accomplished using the above approach, regularly scheduled board meetings will be highly productive and more informative to all board members. The board - with the chairman and CEO/management input - can then act as a "think tank" adding their collective expertise to enhance the alignment process. Management can also benefit by learning from the experiences represented by the diverse board membership input.

By first establishing solid alignment, board members and management can then make the fundamental decisions and take the necessary steps, which will guide and shape the organization in what it does and why it will take the actions needed for success. The board and key management must have a clear understanding of where they are going, so they can effectively carry out their respective responsibilities. Alignment guides the organizations ability to execute as one and deliver sustainably successful outcomes.

When alignment of the organization is identified and agreed upon, it will provide the compass direction upon which the board members and the organizational culture, leadership and performance management processes can be built upon. It will also stimulate and increase open communication, problem solving, decision making and planning at all levels throughout the organization and with board members.

Bottom Line: Boards and management that are strategically aligned and clearly understand their roles and fulfill their responsibilities effectively can make a significant difference in the success of an organization.

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