Organizational alignment is defined as a conscious and systematic coordination and alignment of three powerful and interrelated driving forces: organizational strategy, organizational culture and organizational infrastructure. Organizational alignment is to contribute efficiently and effectively to meet organizational goals and objectives. Weak organizational alignment may impact: allocation, tax efficiency, business process improvement efforts, management of financial flows, and enterprise risk management (ERM), etc.
This tool explains the meaning of organizational alignment risk, outlines business risks and management practices related to organizational alignment, and provides questions to consider.