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The
Imperative of Talent Alignment
Companies
that have a tight match between their strategy and the capabilities of their
people outperform their peers. Our organizational alignment
research found
that having the right talent to execute your business strategy accounts for 29%
of the difference between high and low performing companies in terms
of:
- Revenue
growth
- Profitability
- Leadership
effectiveness
- Customer
loyalty
- Employee
engagement
The
symbiotic relationship between talent and strategy matters. Because your
strategy must go through your talent to be successfully executed, it is no
surprise that organizations must have the right capabilities, confidence, and
conviction to move strategies forward. Crafting an amazing strategy that your
people cannot execute or fully commit to is a waste of time.
Talent:
The Catalyst of Strategy Execution
The
success of every strategic initiative depends on the collective capability,
competencies, and commitment of individuals within the organization. Talent,
from leadership to the frontline, constitutes the bedrock of execution
prowess. Strategies that are misaligned with
talent are asking for trouble.
How
many strategic imperatives have you successfully implemented that did not fit
with your employees’ motivations or talents? Our strategic clarity research
tells us very few. While it seems like a no-brainer to not chase strategies that
outpace or misalign with your capabilities, executives often get enamored with
chasing audacious goals to drive growth.
Examples
of Challenges
Sales
Strategy Shift from Hardware to Software as a Service (SaaS)
Consider
the case of common strategy shift from selling hardware to selling a SaaS model.
According to DevSquad, 80% of businesses plan to transition all of their systems
to SaaS by 2025. Strategically it makes sense to companies because it provides a
more predictable business model and makes it easier to plan for growth and raise
capital.
From
a customer perspective, it can reduce infrastructure costs while improving
scalability, flexibility, accessibility, and security. Selling a long-term
service that must be supported and updated, however, takes very different
solution selling skill set than
selling hardware. While the sales strategy makes
sense, companies must have the sales skills,
sales systems, sales processes,
and motivated resources to enable the new strategy.
Operational
Shift to a Digital Transformation
Another
common strategy shift is for an organization to undertake a digital
transformation. The strategy enables companies to embed technologies across
their businesses increase efficiency, improve agility,
and unlock value.
According
to Gartner, 91% of businesses are involved in some type of digital initiative,
and 89% of companies have adopted or plan to adopt a digital-first business
strategy. While advanced technologies can certainly improve business practices and
how value is delivered to customers, it requires a talent pool equipped with
digital fluency, adaptability, and change management prowess.
Yet,
according to Deloitte, only 44% of businesses are prepared for the imminent
digital disruption that will occur.
Is
your talent set up to deliver on your strategy?
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