46 THE STRATEGIC ALIGNMENT MODEL

Using Domains to Make Decisions

Chapter 2 introduced four management methods for evaluating and track-
ing different aspects of strategic alignment: value management, governance,
technological capability, and organizational capability. Figure 3.2 shows an-
other way of looking at the situation. The matrix describes the role of top
management, the role of IT management, the focus of IT, the value of IT,
and the appropriate strategic planning method for each of the four original
strategic perspectives.
The framework and its application resulted from research begun by
Henderson and Thomas1. As of this writing, Figure 3.2 is based on evalu-
ating over sixty case studies and conducting over three hundred company
assessments over 18 months ending December 1994. Research is under
way in IBM's Advanced Business Institute (Luftman, Papp, Brier) to pro-
vide additional insights in this area. Besides enhancing the framework, the
research is focused on identifying trends and establishing benchmarks
against exemplary organizations. The matrix provides valuable insight into
just how much knowledge executives need to manage IT effectively.

Enablers & Inhibitors to Alignment

A computer-based assessment model developed by Luftman and Brier is
used to assesses the alignment of business and IT. The first question asked
of executives participating in the strategic alignment assessment was to
rate the strength of the alignment within their companies. Only fifty per-
cent indicated that their firms business and IT strategies were properly
aligned. Over forty-two percent indicated that the strategies were not.
Seven percent were unsure or had no opinion. The executives were then
asked to rank the top enablers to achieving alignment. The results are il-
lustrated in Figure 3.3. Identifying these enablers is significant because
they show the importance of executive support and backing, the ability to
achieve the strategic goals set by IT, and the need to identify with the
business plan.
The most common inhibitors to achieving alignment, asked next, are
illustrated in Figure 3.4. These inhibitors shed light on the problems firms
face as they strive for alignment. The primary problem was one of affilia-
tion. Business and IT are going in different directions with poor commu-
nication and interaction between them. Close behind was the need for IT
to improve how it sets it priorities. The problem associated with the tradi-
tional IT backlog is addressed by the inhibitor failure of IT to meet its