Strategic goal alignment at CMP Technologies
| Pages | 24-27 |
| Published date | 01 May 2005 |
| DOI | https://doi.org/10.1108/14754390580000803 |
| Date | 01 May 2005 |
| Author | Susan Layman |
| Subject Matter | HR & organizational behaviour |
N A 1999 FORTUNE magazine article, Ram
Charan pinpointed one primary reason CEOs fail:
“It’s bad execution. As simple as that: not getting
things done, being indecisive, not delivering on
commitments.”1During my 20 years as an HR leader
and practitioner I have always been fascinated with
how organizations execute – or don’t.
When it comes to performance management
systems, HR is often too focused on competencies and
not on planning or execution. How can you determine
someone’s performance if you can’t determine what
they have achieved? For example, if you say someone
has great “strategic capability,” what does this actually
mean? How does it deliver value to the business?
Performance management systems need to have a
strong accountability and execution component.
This article describes how, based on this
understanding, an integrated, high-performance work
system was introduced into CMP Technologies – part
of Rohm and Haas, a global specialty materials
company. The system, which includes a goal alignment
session for top leaders and an online tracking system,
has been instrumental in the company’s success, with
year-on-year profit more than doubling since its
introduction in 2003.
Compelling research
Of course, goals or scorecards alone don’t guarantee
success. An organization must have the right talent, a
sound strategy, a sustainable market position or
opportunity and the right culture to inspire and
discipline its people to be held accountable for their
commitments. However, to add real value, HR leaders
have the opportunity to enable effective execution
through integrated, high-performance work systems.
These systems need to be built on a strong strategic
plan followed by goal alignment to define how the
strategy will be executed.
My thesis, completed in 2003, focused on clarity of
expectations with line-of-sight to strategy as one of the
most effective ways to drive profitable performance
improvement. I found various research outcomes
indicating there was likely to be a high return on
investment if organizations can ensure every employee
has clear expectations and knows how he or she will be
held accountable. This underpins an organization’s
ability to execute its strategy. It’s not a new concept,
but evidence indicates few organizations do it well.
This is a great opportunity for organizations to gain
competitive advantage and for HR practitioners to
enhance their internal credibility.
Four particular bodies of research convinced me –
and my CEO – that goal alignment coupled with
effective goal management can bring results:
1. A member-sponsored HR think tank, the Corporate
Leadership Council, conducted extensive
quantitative research on performance management in
24 Volume 4 Issue 4 May/June 2005
Strategic goal
alignment
at CMP
Technologies
Creating an integrated, high-
performance work system
Ensuring employees have a clear line-of-sight to
strategy is one of the most effective ways to drive
profitable business performance. Here, Susan Layman
describes how her organization implemented a goal
alignment conference and subsequent tracking system
to get all employees focused on strategy.
by Susan Layman
Rohm and Haas Electronic Materials, CMPT I
© Melcrum Publishing Ltd. 2005 For more information visit www.melcrum.com or e-mail info@melcrum.com
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