The Alignment of Strategy and Structure and Its Effect on Financial Performance

2017-11-01T15:23:26Z (GMT) by Sara Al-Asmakh
<p><b>The Alignment of Strategy and Structure and Its Effect on Financial Performance</b></p><p><br></p><p><b><u>ABSTRACT </u></b></p><p><br></p><p> </p><p>Both personal observation and extensive research show that some companies maintain consistent strategies and senior management while others see a revolving door of CEOs and strategies. Many of these companies also produce wide variations in their financial performance. This raises critical questions about how these differences may be connected to each other. There is a substantial body of research that shows alignment between strategy, structure and people improves organization performance. This research demonstrates that organizations who effectively align their employees, leadership, culture, structure and systems with their strategic direction deliver better financial performance. To further test these conclusions with a new research design, data was collected and analyzed on four large real estate development companies in Qatar. This included a validated employee engagement survey with global benchmark data, seven years of financial statements, interviews with employees, and review of changes in strategies and CEO's over time. The study confirmed existing research that better aligned organizations outperformed organizations that were not as well aligned. This study calls out for further research with companies in multiple industries and additional alignment measurement tools to explore more hypothesis about strategic alignment. Several recommendations to improve company performance came out of this study. 1) Employees need to be involved in strategy formation. 2) When the strategy changes, so should alignment. 3) New CEO's shouldn't always change the strategy. 4) Strategies must be clear and focused. 5) Better leadership at all levels improves implementation. 6) CEO's can have an excessive impact on results.</p>

Keyword(s)

Real Estate Validated Survey Survey DecisionWise Financial Data Alignment Misalignment Strategy Strategy Formation Strategy Implementation Structure Strategy and Structure Definition of Strategy Clear and focused strategies Clear strategies Focused Strategies Definition of Structure Strategy and Structure Connection Strategy Formulation and Implementation Definition of Strategy Formulation and Implementation Strategy Formulation and Implementation Connection Strategy Implementation Failures Role of Leadership in Strategy Implementation Employee Involvement in Strategy Formulation and Implementation Relationship between Strategy and Structure Alignment between Strategy and Structure Misalignment between Strategy and Structure Alignment between Strategy and Structure and Its effect on Performance Aligned Organizations Aligned Companies Definition of Alignment Importance of Alignment Alignment and Culture Alignment of Strategy and Structure Alignment of strategy and financial performance Alignment of strategy, structure and financial performance CEOs and Strategy CEOs Real Estate Employee Engagement Employee Attraction and Retention Engage Employees Employee Attitudes Definitions of Employee Engagement Benefits of Employee Engagement Leadership Role in Employee Engagement Achieving Employee Engagement Leadership Distributed Leadership Leadership Development Characteristics of Leaders Examples of Leaders who supported Distributed Leadership Cheryl Bachelder Jack Welch Financial Performance Literature Review Statistical Analysis Qatar Qatar 2030 Vision Qatar National Vision 2030 Top Management Exercise Research in Qatar Structure Re-aligned Study the Alignment of Structure and Strategy How people and structure influence the implementation of strategy Comparing the alignment of strategy and structure with financial performance Effect on Qatar 2030 Vision Employee Involvement and Strategy When the strategy changes, so should the alignment Awareness of the importance of alignment, employee engagement, culture and leadership CEO changes Better leadership The Impact CEOs have on performance Don Shapiro HEC Paris- Qatar Campus Real Estate Development Companies Sara Al-Asmakh Strategic Alignment Implementation Organization Development Organization Performance Organizational Performance Execution Sales Profits

License

CC BY 4.0