Strategic Alignment: Why It Deserves Your Board's Attention

Time and time again I see boards frustrated by strategies that look brilliant on paper but totally missing the mark in execution. As a director, CEO, or strategic leader, you’ve likely encountered this frustration as well. We pour time, resources, and expertise into crafting plans, only to find the outcomes falling short. It makes us hesitant to investing our valuable time at strategic retreats when we expect that too often they don't deliver what they promise.

When strategies falter, it’s not just the organization that suffers—it’s everyone involved, especially the leaders who put their credibility on the line.

In reflecting on these challenges, it's clear to me that we're undervaluing an important element in the strategic process: and it's strategic alignment. Without alignment, strategies have little power and fail in providing a competitive edge. They end up costing more than they deliver, leaving both the board and leadership team asking why the investment didn’t yield expected results.

Baked into the logic of strategy is the imperative of alignment. Alignment, like gravity, pulls the elements of strategy together so growth and success can be achieved. But if misalignment is left unchecked, it creates a counterforce, breaking apart the very cohesion that makes success possible.

Why Strategic Alignment Matters

So why is this something I feel boards need to pay special attention to? It’s simple. Strategic alignment doesn’t happen on its own; it requires intention, active focus and a system of checking what you're expecting. It's really important to bake this in, because strategic misalignment, whether in logic or execution, is sure to lead to fragmentation, wasted resources, and stalled progress. A commitment to alignment may therefore be one of the most impactful stances a board can take to improve performance, culture, and business results.

I like to visualize it like this: strategic alignment works somewhat like gravity. Just as gravity keeps everything grounded, strategic alignment holds an organization’s purpose, values, vision, mission, and the actions that flow from those together. When strategic alignment is effectively managed, growth and success effortlessly follow. But when alignment is neglected, it’s like weakening gravity’s pull. Actions drift, resources get wasted, and the organization loses its competitive edge.

Alignment isn’t a one-off task; it’s an ongoing commitment that boards need to keep front and center. And from my experience, boards that prioritize alignment see greater consistency, agility, and long-term impact.

The Two Pillars of Strategic Alignment: Logic and Effort

In my opinion there are two aspects to strategic alignment: logic and effort. Logic refers to the coherence of purpose, values, vision, mission, and strategic goals which all need to connect in a way that makes sense. Effort, on the other hand, involves directing time, talent, and resources consistently toward the initiatives that serve these aligned goals.

Misalignment can happen in both areas, and in each case they can pose some significant risks to the realization of business growth and success.

The Risks of Misalignment: What Boards Need to Know

When alignment breaks down, it usually happens in one of two ways: a mismatch in logic or a mismatch in effort.

Here’s why both types of misalignment deserve your board’s attention:

1. Purpose and Vision Mismatch (Misaligned Logic)

Purpose is why the organization exists; vision is where it’s headed or what it intends to become. Misalignment in strategic logic between your purpose and vision can end up leading to “strategic drift” when where you say you want to be is inconsistent with evolving market dynamics.

Example: Kodak’s purpose of preserving memories was still relevant, but it failed to adapt its vision from film to digital, keeping resources tied to a vision that increasingly became incompatible with its purpose.

2. Mission, Values and Strategy Mismatch (Misaligned Logic)

When a company’s strategy overlooks the core identity and expectations of its customer base, it risks alienating loyal consumers and weakening brand value.

Example: JCPenney’s shift of strategy to an “everyday low prices” model conflicted with its mission of providing deals and discounts that its loyal, value-conscious customers loved. By attempting to reposition without aligning to its values of accessibility and affordability, JCPenney lost customer loyalty and experienced declining sales.

3. Values and Actions Mismatch (Misaligned Effort)

When actions don’t align with stated values, culture suffers and trust erodes. Misalignment here can harm morale and damage the company’s credibility.

Example: Volkswagen articulated values that were consistent with its purpose and vision, emphasizing environmental responsibility and innovation. Yet they had an emissions scandal that revealed a clear mismatch between its environmental values and actual practices, which hurt its reputation.

3. Resource Misallocation (Misaligned Effort)

Misaligned effort in resource allocation can also derail strategy. When resources are spread across disconnected initiatives, the organization’s competitive position weakens.

Example: Yahoo’s scattered acquisitions in social media, ad tech, and content were disconnected from a unified goal, which diluted its competitive position.

4. Failure to Commit to Strategy (Misaligned Effort)

Fragmented focus in execution can also weaken strategy. When the organization fails to fully commit resources to a strategic priority, opportunities are missed.

Example: Microsoft’s inconsistent investment in Windows Phone revealed a lack of commitment, leading to missed opportunities in mobile as competitors pulled ahead.

Embedding Alignment as a Core Board Priority

The examples above show how misalignment can undermine even the best-laid plans. Whether the misalignment is in logic or effort, it poses risks that ripple throughout the organization.

One of the ways that boards can practically take action is to:

1. Commit To The Strategy: Make sure that the organization's strategy is fully understood by all directors and by management, and that the logic of the strategy is impeccable.
2. Make the time to work on yourself as a board. Develop your own Board Strategy that is aligned to the organizational strategy and which focuses board work strategically to support the organization's goals. I have posited such a framework in one of my earlier posts.
3. Prioritize Resources Based on Strategy: Boards should advocate for prioritizing resources (time, budget, and talent) on initiatives that directly support strategic goals. Ensuring that effort and investment align with the organization’s top priorities prevents resource misallocation and strengthens the organization’s capacity to achieve meaningful outcomes. Using a solid framework in committing capital to new initiatives will also be helpful. Take a look at the FRAMES framework that I proposed in one of my earlier posts.
4. Encourage a Culture of Alignment and Accountability: You can model a culture that values alignment by setting expectations around cohesive, purpose-driven actions. Examine how leadership is fostering alignment through transparency, accountability, and a shared commitment to strategic goals across teams.
5. Align Metrics with Strategic Goals: Encourage the organization to track progress on metrics that reflect long-term strategic priorities, not just short-term financial outcomes. These metrics should be front and centre in your board pack. Boards should regularly review these metrics to assess how well resources and efforts are moving the organization toward its vision and make adjustments as necessary.
6. Use Scenario Planning to Test Strategic Resilience: To maintain alignment even as the market shifts, boards should engage in scenario planning to explore how different changes (e.g., technological shifts, regulatory changes) might impact strategy. This proactive approach allows the board to anticipate potential misalignments and ensure the organization is agile enough to adapt while staying true to its core mission and vision.

In Closing

Ultimately, strategic alignment is a powerful, ongoing commitment that can drive organizational success. Boards that make alignment a priority help foster a culture of focus and intentionality, ensuring that strategic goals are supported from planning through execution.

Is alignment part of your boardroom discussions? What will you do differently to make alignment the gravitational pull that holds your company strategy together, directs the allocation of resources and drives towards sustainable success?

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