Tuesday, March 31, 2009

Are you aligned with your customer’s business…

…and how do you know?

Last month we took an internal view of business alignment using the Pittsburgh Steelers and a celebrity chef as examples of how everything within our business must be in sync, or aligned to produce superior results. In this month’s issue we will take an external view of business alignment. This view uses the same principles of the Business Alignment Model and applies it to your customers, suppliers, distributors and anyone else outside your business you depend on for your success.

For the moment, let’s focus on your customers. Every customer you have, whether business or consumer has a purpose and/or strategy behind their buying decisions. They look to achieve their own results by way of goals establish to succeed in whatever circumstances brought them to you. A business customer may have a more deliberate and pronounced Strategy, Structure and Goals whereas for the consumer customer these may be more implied, but still there. In other words they are looking for alignment on some level when they become your customer.

So where do you fit in their alignment process? Are you directly helping them solve their Goals or are you directly helping them achieve their Strategy and Vision? For the readers who do business with other businesses, look at your 5 largest customers and place your services and products in their business alignment process. Were you working on a project to achieve a tactical objective or was it tied to a strategic goal? Think of it as the difference between being a vendor or a strategic partner. In the consumer business, think of it as the difference between a single order and repeat business.

This idea is also valuable to you in your relationships with your own vendors and/or partners. I recall a first time meeting with a supplier to discuss a new application. The first question the CEO asked me was “What is your Vision?” I knew immediately I was speaking with a company who understood business alignment and where she wanted her company to participate in it. As I’ve outsourced parts of my business operations, I discussed my Vision with each supplier to ensure I am working with people who want my business and not just my order!

This idea of external business alignment is the basic foundation to building loyal relationships with customers, suppliers, distributors and all those who are instrumental in your success in today’s business environment.

Lead Well.

Rick Lochner

Thursday, March 5, 2009

We can learn much about Business Alignment from...

...the Super Bowl Champion Pittsburgh Steelers.

I am sure everyone reading this either watched or heard of this year’s Super Bowl and in particular how this year’s game went down to the wire. What likely did not get as much press describes how the Pittsburgh Steelers became the first franchise to win 6 Super Bowls since the Super Bowl format was created. While I am not inherently a Pittsburgh football fan, I believe their story is a great example of internal Business Alignment, the topic of this month’s Leadership message.

In an exclusive interview published in the 1/31/09 weekend issue of The Wall Street Journal, Bill Cowher, who coached the same Steelers to the 2006 Super Bowl title, commented on how the organization successfully works the way it does. When speaking of the challenge in building chemistry among the players due to free agency, the importance of building chemistry in management is crucial. “You have to have everyone reading from the same page. If there is division within the structure of the organization, it’ll seep down onto the field”. Considering the Steelers organization has had only 3 coaches since 1970, they have put a unique face on business alignment putting them in a unique position of stature in their industry. I would bet Scott Phelps gets credit for being part of the organization’s success as does Santonio Holmes, the 2009 Super Bowl MVP.

Internal Business Alignment occurs when all of the elements that contribute to Mission accomplishment are in sync with each other. It means the Strategy aligns with the business Vision. It means the organizational structure and business processes are systematically aligned to produce the desired results outlined in the Strategy. It means establishing, tracking and measuring the business Goals to directly achieve the Strategy and, ultimately, the Vision. Alignment, like gravity, applies universally across all types and sizes of business. Your business may denote a unique application of business alignment, but the alignment is crucial to your business success nonetheless.

To put this in another context, an accomplished chef had this to say recently when we spoke of Business Alignment. He said it reminded him of a term used in the culinary world called "Mise En Plac”, a French term meaning: 'put in place' or 'in its place'. It basically describes all the prep work done before initiating the actual cooking. It encompasses the organization of equipment and tools that are to be used for the product, washing and cutting of vegetables or “mirepoix” and the proper measurement of herbs and spices. In a business sense, every CEO and Business owner has to be the 'celebrity chef'. Every 'celebrity chef' knows what the desired result is and it's their responsibility to communicate their vision to those doing the prep work. Without clearly stating their intentions, it is difficult to motivate a group or team to work towards a common goal! That's when you start making seemingly simple mistakes like confusing sweet basil with oregano!

So no matter whether on the biggest field of sport or in famous kitchens, no matter what industry or size of business, clarity of purpose and vision leading to achieving desired results will put you at the top of your business. Are you ready for your next Super Bowl?

Lead Well.

Rick Lochner