What is Strategy Misalignment?

Corporate strategy is an amorphous term.  There are countless definitions available, so let’s start with defining this term for the purposes of our discussion.  Corporate strategy is the amalgamation of an organization’s defined strategic key outcomes (or strategic goals in other words) in support of the mission and the vision of its business.

Alignment, on the other hand, is a much broader issue involving all aspects of the organization’s business eco-system. The business eco-system is the sum of internal and external functions of an organization’s environment.  The complexity of the environmental conditions play a role in the unpredictability of the outcomes specifically when random elements are introduced (ref: Chaos Theory).

So strategy alignment is  synchronization of the strategic business goals with the operational and tactical executions of the business units targeting achievement of the respective unit’s business goals.

Strategic misalignment occurs when operational initiatives are not in sync with the defined strategic goals of the organization.

And this occurs quite often leading to GAP !