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Strategic Organizational Alignment by Chris Crosby

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CHAPTER 2

Goals

 

Scenario 1—

Plant Manager 1: “We are currently losing money in the market, it costs us $1.48 per pound to make aluminum ingots and we sell them for $1.36 per pound. If we do not lower the cost of making ingots, we are in trouble as a business. In nine months, our goal is to reduce the cost of producing a pound of ingots to $1.21.”

 

Scenario 2—

Plant Manager 2: “We are not doing so well, we have to improve.”

Consultant: “What business metrics are you working towards?

Plant Manager 2: “Metrics? Hmm, not really sure”

 

The fundamental task of business leadership is to align employees in the same direction. Workplace goals represent that direction. Effective goals are clear, simple, numeric, and measurable. The ability to set ...

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