Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.

6 Factors of Performance Alignment

Editor's Note: Take a look at our featured best practice, Objectives and Key Results (OKR) (23-slide PowerPoint presentation). Successful organizations are using Objectives and Key Results (OKR) now. OKRs are efficient way to track company and team goals and measure their progress. It helps every organization's success by cutting out unimportant goals and focusing on what truly is important within the organization. OKR [read more]

Also, if you are interested in becoming an expert on Performance Management, take a look at Flevy's Performance Management Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Deviation in Performance results in failure to achieve our set objectives, which consequently leads to criticism from stakeholders, among other more severe consequences.

One reason for the inability to meet Performance objectives is that individual employee goals do not match up with the organization’s larger goals.

Performance Alignment occurs when actual Performance synchronizes with expected Performance.

Expected Performance ensues when an individual’s conduct generates the envisioned results or outcomes.

Employee Performance is vital in Performance Alignment.

Performance Alignment basically means making sure that all employees throughout the organization are purposefully endeavoring in the direction of the organization’s goals.

Performance Alignment happens relatively spontaneously within small setups.  Growing organizations face the challenge of not being able to work in close quarters with all employees, and thus misalignment with the organization’s greater vision and goals can ensue.

People usually do not intentionally go adrift from the organizational goals; the fact is that it takes a great deal of deliberate exertion to keep a budding or larger organization aligned.

Performance Alignment is different from Performance Management in this aspect.  Although Performance Alignment and Performance Management are strongly associated, they arise from distinct objectives and mentalities.

  • Performance Management is related to Productivity and achieving Performance goals.
  • Performance Alignment Mindset concerns itself with the manner in which the team’s endeavors work up to the organization’s eventual objectives and broader vision.
  • Performance Management mentality focuses on tangible skills, augmented and efficient Productivity, and training that supports this mindset.
  • Focus in Performance Alignment is not only on the team Performance but also on whether what they are undertaking is the correct area to be working on.

Performance Alignment is affected by 6 key factors that relate to individual as well as collective Performance.

  1. Clarity
  2. Commitment
  3. Competence
  4. Cooperation
  5. Connections
  6. Circumstances

All 6 factors project people as “living control systems” who are goal-oriented and try to make their perceptions match their expectations. 

Let us delve a little deeper into some details of these factors.


Clarity means figuring out what the success variable is and what its value needs to be for it to be considered a success.

Individuals who exert control measure up their perception of the present state with what they envision—their desired state.


Individuals who act as “living control systems” display the characteristic of being committed to the outcomes they have set for themselves.

Performers for whom the desired outcome is set by the managers may not have the same level of commitment as someone who has bought into the outcome.  Managers and workers should both take steps to make sure that enough commitment exists.

Commitment is a combination of 2 conditions: the Contribution of outcomes to the broader objectives and the Positive Balance of the consequences.


Competent people can vary their behavior according to circumstances in order to consistently achieve an outcome.

Such flexibility allows them to realize reasonably constant outcomes under varying circumstances.

Interested in learning more about 6 Factors of Performance Alignment?  You can download an editable PowerPoint presentation on 6 Factors of Performance Alignment here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

100-slide PowerPoint presentation
Curated by McKinsey-trained Executives The Complete Performance vs. Trust Matrix Toolkit: Unleashing Success in Performance Managemet and Strategy In the dynamic and competitive landscape of the business world, organizations strive to achieve a harmonious blend of performance [read more]

Want to Achieve Excellence in Performance Management?

Gain the knowledge and develop the expertise to become an expert in Performance Management. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Performance Management (also known as Strategic Performance Management, Performance Measurement, Business Performance Management, Enterprise Performance Management, or Corporate Performance Management) is a strategic management approach for monitoring how a business is performing. It describes the methodologies, metrics, processes, systems, and software that are used for monitoring and managing the business performance of an organization.

As Peter Drucker famously said, "If you can't measure it, you can't improve it."

Having a structured and robust Strategic Performance Management system (e.g. the Balanced Scorecard) is critical to the sustainable success of any organization; and affects all areas of our organization.

Learn about our Performance Management Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources

241-slide PowerPoint presentation
Benchmarking is the pursuit of superior company performance through best practices. It involves setting operational targets based on industry best practices. Traditional target-setting methods have left some companies vulnerable to global competition. Japanese philosophy of "dantotsu" [read more]

28-slide PowerPoint presentation
35-slide PowerPoint presentation

About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

, , , , , , , ,

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Connect with Flevy:


About Flevy.com   /   Terms   /   Privacy Policy
© . Flevy LLC. All Rights Reserved.