Strategic Alignment Matrix: supporting management coordination in complex organizations

Purpose The paper proposes a framework, labeled Strategic Alignment Matrix, to attain organizational alignment by integrating the horizontal dimension of performance (results driven by activities carried out by multiple organizational units) and the vertical dimension (results of single units) through the use of a sophisticated information structure composed of quantitative measures and management processes. Design/methodology/approach A science-based design approach was adopted. A review of the literature on Strategic Performance Management Systems (SPMS) and coordination allowed the identification of a set of design principles (guidelines reflecting the accumulated knowledge in the literature). The design principles guided the design of the proposed framework. The framework was tested in a tiles company on the new product development process. Findings Five design principles are presented for the design of a working SPMS: (1) to integrate the horizontal and vertical dimensions of performance; (2) to have all the relevant information in one place (package); (3) to understand how actors contribute to the overall performance; (4) to favor the emergence of integrating conditions for coordination; (5) to enrich the role of quantitative non-financial information to attain inter-functional integration. During the test of the framework, managers highlighted their increased ability to coordinate actions and the existence of a double-loop learning. Research limitations/implications The model was tested in one organization. The study should be replicated in other contexts connecting the Strategic Alignment Matrix to the budgeting and incentives systems. Originality/value Working at the interface between science and design helps to address the theory-practice gap that has been a priority in management studies for a long time.