The Alignment Principle

One of the most important principles I've learned is to make sure that stakeholder interests are aligned to a common objective. One, it's the right thing to do. Two, it's a powerful motivator when everyone is working towards the same goal. Three, it fosters productivity, and four it helps reduce the cost of human capital management. Ultimately, alignment occurs when the critical parts of your company are aligned with (ie support) its strategy (Owen Darbishire). It's about making sure that you, company management, and investors are always working toward the same goal.

Performance Hypotheses states that the more highly aligned a firm’s organization is with its strategy, the more effectively it will execute its strategy and the better it will perform (DiOL module 3). Evidence suggests that the benefits of alignment are not just additive. Exponential benefits are triggered through consistency across multiple dimensions – “reinforcement” (Owen Darbishire, DiOL)

Well structured teams show up to work, they meet deadlines, accomplish their tasks and meet their goals. High performance teams are essentially the same effective system; however, their performance outputs are a function of soft factors. High Performance Teams excel in: commitment, trust, communication, responsibilities (purpose), collaboration (problem solving + knowledge brokering), involvement and continuous improvement.

Successful Private Investors...

"Successful private investors are people who value a holistic approach to business. They figure out how to ask the right questions in the right order. They value intellectual honesty and let facts speak for themselves. They do not let emotions cloud their decisions. Their ability to be self-critical, reflective, and adaptive is the lifeblood of their livelihoods. They see companies not as mere numbers on a balance sheet but as living entities that need support and encouragement to survive." ~ The Masters of Private Equity and Venture Capital pg8