One of the biggest challenges a new CEO can face is aligning the executive team with a common purpose, strategy, and goals. The new CEO might be entering an environment that needs a significant turnaround, which could mean facing a hostile or exhausted leadership team.
Or the new CEO might be replacing a well-loved leader who engendered fierce loyalty, even if that leader’s ideas put the company behind the competition. Whatever the circumstances, one key to a successful tenure as CEO is executive team alignment.
An excellent illustration of team alignment comes from the bestselling book The Boys in the Boat. The book recounts the story of the 1936 University of Washington rowing team that won the gold medal at the 1936 Berlin Olympics. In the book, author Daniel James Brown discusses the concept of “the Swing”: that elusive sensation when every crew member is so perfectly aligned and in unison that the shell feels lighter than air and seems to glide effortlessly above the water.
For the new CEO, finding the executive team’s “Swing” can be the key to driving organizational success. Here are seven benefits of executive team alignment.
1. Better Financial Performance
Finding “the Swing” wasn’t always necessary for the University of Washington rowing team to win races. Many crews never find “the Swing,” even though they may outperform in the water. However, teams that find perfect alignment and unity tend to surpass others. When the University of Washington crew found it, they were nearly unstoppable.
Companies can be financially successful without executive team alignment, but teams aligned toward a common mission are 1.9 times more likely to deliver above-median financial performance.
2. Improved Resource Sharing
Every organization has limited resources to accomplish its goals, whether it’s budget, talent, or time. Conflict over resources can arise when executives are working toward their own siloed goals or when the team disagrees on what goals, projects, initiatives, or strategies are most important. Leaders may not want to share their best people or object to an infrastructure initiative because of competing interests.
An executive team aligned around common goals is more likely to share resources. For example, if a digital transformation project is necessary to improve product and service delivery, an aligned leadership team will be more likely to prioritize that project rather than act possessively about resources or projects.
3. Cohesive Company Culture
An old proverb says, “When you sweep the stairs, you start from the top.” Likewise, in any organization, creating a workplace culture where everyone is aligned toward common goals and outcomes starts at the top.
When CEOs and their executive teams align around a common purpose and strategy, they’ve achieved the first step toward a positive, cohesive culture where everyone is aligned. A cohesive culture tends to foster better communication across functions and roles, which helps ensure that everyone is on the same page and focused on delivering results.
4. Better Processes
Once the executive team is aligned, developing good processes or analyzing existing ones becomes more straightforward and streamlined. Since everyone is focused on the same strategy and goals, it’s easier to figure out how a process supports those goals, where it can be improved, or even if it should be eliminated.
5. More Innovation
An aligned leadership team is more likely to deliver innovative solutions, which is key to staying competitive in a rapidly changing business environment. An executive team that agrees on strategy, purpose, and mission is more open to creative solutions and innovative ideas. In addition, when leaders don’t hold tightly to their own resources, they can better shift those resources around to support business-building projects.
6. Improved Outcomes Through Change
Any leader who has guided a team or company through organizational change knows how challenging change management can be—and with good reason! Humans are generally resistant to change, and when leaders don’t manage questions, expectations, and concerns, the changes may not succeed.
A leadership team that’s aligned behind the change can more easily and effectively communicate with the entire staff. They can help motivate team members to embrace changes and leverage early adopters to help champion change.
7. Improved Customer Experience
An executive team that has taken the time to define strategy, mission, purpose, and goals will be better able to design and implement processes that deliver the best possible customer experience. The executive team can communicate a consistent, high-quality approach to the customer experience, ultimately building brand loyalty and improving sales.
Building a solid leadership team should be a top priority of any new CEO, but it may not be accomplished in the first 100 days of a tenure. To build a genuinely aligned executive team, spend time listening to existing team members, evaluating alignment, and defining the mission, strategy, and goals that are best positioned to deliver business and people results.
SELF CHECK:
- What is one way our executive team could improve alignment?
- Is there one process we could focus on to improve alignment?
- How is our executive team culture impacting the overall organization right now?
