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Three Levels of Alignment

Posted on: October 12th, 2023

An organization needs to measure and achieve success.  A business model is the first necessary step.  That model must align with the organization’s primary objectives, and every aspect of the business must align to achieve success. These three levels of alignment will help you do that.

MLA Companies offers business model alignment and strategic planning for success.  We are a business finance, strategy, and solutions provider headquartered in Dayton, Ohio, with team members in Southwest Ohio and the Southeastern US.

While a company’s purpose generally doesn’t change, strategies and organizational structures do.  Consider the following two questions:

  1. How well does your business strategy support fulfilling your company’s purpose?

Purpose is what the business is trying to achieve. Strategy is how the business will achieve it.

  1. How well does your organization support the achievement of your business strategy?

“Organization,” as we’re using it here, includes all of the required capabilities, resources (including human), and management systems necessary to implement your strategy.

Three Levels of Alignment

The following three levels of business model alignment can help your organization succeed.

Level 1: Alignment & Fit of your Business Model Building Blocks:

At the very least, the building blocks of your business should be mutually reinforcing and form a coherent whole.

For example, you must find the best distribution channels to deliver your product or service. Then you must ask yourself, what is the best distribution channel design for each specific customer segment?

Level 2: Alignment & Positioning of your Business Model in the Environment and Competitive Landscape:

The greatest business model is useless if it can’t withstand competition.  It should be created with this in mind and aligned with the five forces of your business model environment: Technology, Competition, Customer Demand, Social Environment, and the Legal Environment.

Level 3: Alignment of your Business Model with Future Scenarios:

At this point, you have developed a business model with a strong, competitive position ready for the future.  To move to level 3, you need to map the outcomes of an uncertain future back to your current business model to be better prepared for the trying days ahead.

Ensure your organization’s short-term and future success by partnering with MLA Companies today!