ABSTRACT
Organizational capital measures the fit between company's strategy and the organizational model. If a business leader accelerates the alignment of strategy, organizational models and people, they increase the probability of maximizing the potential of their business and ultimately their business results. There are three basic elements of a company's organizational model: Organizational structure; valued behaviour; recognition and rewards system. Organizational structure identifies the line of authority, reporting and coordination, real and perceived career paths and decision-making authority. It plays a significant role in strategy execution. Value alignment (VA) diagnostics changes the concept of strategy execution. With VA, any business leader in virtually any industry can review entire operations rapidly and identify how elements are operating in alignment with the firm's value delivery strategy. Using a driver-based model as the starting point for operational planning and financial forecasting provides numerous benefits.
