Intro To Alignment By Design

Alignment by Design The Breakthrough Approach to Organizational Effectiveness & Excellence Thomas Bradley, PhD [email_address] Alignment by Design, Inc.

Challenges of the 21 st Century Knowledge-based Economy Burning Platforms Fundamental Business Challenges Need for Profound Knowledge Solution: Alignment by Design Fundamental Principles The “Business-of-Business” Basic Questions Conceptual Model Summary Main Objectives

Challenges of the 21 st Century Knowledge-based Economy Burning Platforms Fundamental Business Challenges Need for Profound Knowledge

Burning Platforms Survival Furious global competition The elimination of waste Reduction in time-to-market Organization governance Transparency Regulatory compliance Global supply chains

How do we position to compete successfully in light of the risks of the “21 st century, global, knowledge economy?” Fundamental Business Challenges How do we move from “ Good to Great ?” How do we ensure that the business is being “ Built to Last ?” How do we optimize the “value creation & sustainment proposition for all stakeholders?”

“ Without changing our patterns of thought, we will not be able to solve the problems we created with our current patterns of thought” - Albert Einstein Profound Knowledge We Must Break With the Past – We Must Do Things Differently

Solution: Alignment by Design Fundamental Principles The “Business-of-Business” Basic Questions Conceptual Model

Fundamental Principles of Alignment By Design Principle 5 – Envisioning Principle 1 – Value Creation & Sustainment Principle 2 – Everything by process Principle 3 – Synergy Principle 4 – Optimization

Fundamental Principles of Alignment By Design Principle 1 – Value Creation & Sustainment The fundamental purpose of business is to create value for its stakeholders Principle 2 – Everything by process Both quality and value are created and sustained through effective process design and management Principle 3 – Synergy See interrelationships versus differences in things is fundamental to alignment such that 1+1 = 5 (exponential, nonlinear ROI) Principle 4 – Optimization Optimizing the integrated factors of business is how to sustain and grow value Principle 5 – Envisioning “ Begin with the end in mind.” Envision the future and put strategies and plans in place to successfully achieve the goals and objectives

There is no magic The breakthrough approach to organizational effective & excellence is not easy or simple. There are no quick fixes or silver bullets. It takes time and discipline.

The Business-of-Business Basics Questions 5. Where there are gaps in performance or risks in our ability to achieve our objectives, what are we going to do? 1. What do we want to achieve? 2. How are we going to achieve our objectives? 3. Are our processes capable of achieving our objectives? 4. Where are we in respect to achieving our objectives?

Purpose: Value Creation & Sustainment 1. Why? To Create Stakeholder Value The model starts on the right with the question “Why? ” Why does the business exist? What is the organization purpose or mission? In answering these questions, we identify the value proposition to various stakeholders. The value propositions should be quantifiable and tangible results.

2. Strategic Goals& Objectives This element of the conceptual model addresses the question - What does the organization wants to achieve? What are the organization objectives? The vision articulates a realistic and attractive future for the organization. Goals are the pathways to the vision. They support the vision and exist within a framework created by the vision. Strategic objectives support strategy and power progress toward the achievement of goals.

3. Strategic Alignment This element of the conceptual model addresses, in part, the question – How are we going to achieve our objectives? Alignment by Design drives both vertical and horizontal alignment. Vertical alignment drives goal alignment or linkage from strategic objectives, process objectives, functional, project, team, and employees’ objectives. Horizontal Alignment drives customer requirements alignment or linkage across the end-to-end customer value stream.

Strategic Alignment Adapted from: “The Power of Alignment” by G. Labovitz & V. Rosansky Strategic Goals & Objectives Customers People Processes Horizontal Alignment Vertical Alignment

4. The Systems Approach: A Process-Based Management System This element of the conceptual model addresses, in part, the question – How are we going to achieve our objectives? Bottom line, everything should be by process. Quality and value is only created, sustained and improved via the process. We align these processes into a coherent system-of-operation that optimizes value, we achieve our business objectives and results.

Process Based Management System Concepts Adapted from: Process Based Management: A Foundation for Business Excellence – by Dennis Daly, et.al Process-Centered Leadership Process Measurement & Metrics Framework End-to-End Processes Integrated set of tiered process - Management - Value Stream - Enabling Support Performance Improvement Framework Customer Expectations Voice of the customer Customer driven products & services Issue-Base (Reactive) Problem solving Corrective Actions Risk-Based (Proactive) Risk Management Preventive Actions System Thinkers & Architects Change Agents Coaches System Doctors

5. Performance Assessments Using Risk-Based Quality Audits This element of the conceptual model addresses the question - Are we capable (effective & efficient enough) of achieving our projected, strategic and operational goals and objectives? Given our goals and objectives we must seriously assess our organizational process capability and their abilities to achieve them. A Risk-Based Quality Audit is an organizational diagnostic assessment tool that provides management with the information and data to develop the context for the answers to the five basic ‘business-of-business’ questions.

Strategic Planning & Management Assessment Risk Assessment Strategic Alignment Assessment Risk Assessment Capability Maturity Assessment Performance Management Assessment Risk Based Quality Audits Risk Assessment Risk Assessment Process Based Management System Assessment Based Upon ISO/TL9001

6. Organizational Performance Improvement Framework This element of the conceptual model addresses the question - Where there are gaps in performance or risks in our ability to achieve our objectives, what are we going to do? It should be geared towards learning from the past and simultaneously anticipating the future. The Organizational Performance Improvement Framework serves to optimally integrate various initiatives into a coherent perspective geared to maximizing synergy and impact upon the enterprise as a whole.

Alignment By Design Performance Improvement Framework How Do We Identify and Manage Threats and Opportunities? Preventive Actions Enterprise-Wide Risk Management Techniques What is Our Overall Organizational Health? Balanced Score Card Risk-Based Quality Audits How Do We Effectively React to Problems? Problem Solving Root Cause Analysis Corrective Actions How Do We Increase Our Capability & Achieve Breakthrough Performance? Six Sigma Lean CMMI

Alignment By Design Purpose: To Continually Create Optimum Value for the Organization’s Stakeholders Strategic Goals & Objectives Iterative Strategy Planning Framework (The Elliot Model) Strategic Goals & Objectives Organizational Strategies Performance Reviews Process Based Management System Based upon ISO/TL 9001 Performance Assessment Using Risk Based Quality Auditing Strategic Planning Assessment Strategic Alignment Assessment Performance Management Assessment Capability Maturity Assessment Risk Assessment Performance Improvement Framework Six Sigma Lean CMMI Balanced Score Card Problem Solving Risk Assessment Change Management Best Practices Strategic Alignment Horizontal Alignment (Customer Focus) Vertical Alignment Process Project Using Goal Deployment & Value Stream Mgt Teams Individuals

Alignment by Design The Body of Knowledge

Alignment by Design The Breakthrough Approach to Organizational Effectiveness & Excellence Alignment by Design Risk-Based Quality Auditing Going Beyond Compliance In Pursuit of Effectiveness The "Iterative Strategic Planning Process Framework” (The Elliott Model) Alignment by Design The Team Trilogy Achieving and Maximizing the “Power of Teams” Through the “Magic of Teamwork” Excelling at the Fundamentals In Pursuit of Perfection The Alignment by Design Field WORK Manual Volume 1

For more information on This exciting and powerful methodology Visit our web site at www.alignmentbydesign.com or, Contact Tom Bradley, PhD via email at [email_address]

Intro To Alignment By Design

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Intro To Alignment By Design