Written by Strategic alignment maturity is a concept that measures how well an organization aligns its business strategy and its IT strategy.
It is based on the idea that business and IT should work together to achieve the goals of the organization and create value for its stakeholders.
However, achieving and maintaining strategic alignment is not easy, as there are many factors and challenges that can affect it.
Such factors include changes in the environment, competition, customer needs, technology, and culture.
Therefore, strategic alignment maturity is not a static state, but a dynamic and continuous process that requires constant monitoring and improvement.
To help organizations assess and improve their strategic alignment maturity, there are various frameworks or models that provide criteria and indicators to measure the level of alignment across different dimensions.
One of the most widely used models is the Strategic Alignment Maturity Model (SAMM) developed by Jerry Luftman, a professor and consultant in the field of strategic IT management.
The strategic alignment maturity Model is a framework or model that assesses the level of alignment between an organization’s business strategy and its information technology (IT) strategy.
SAMM combines six different organizational components (communication, value measurement, governance, partnership, technology scope, and skills) into a strategic alignment maturity score.
Let us look at these components:
1. Communication: This area assesses how well the business and IT communicate their plans, objectives, and expectations to each other.
It measures the effectiveness of communication and alignment between IT and business organizations, facilitating a clear understanding of strategies, plans, environments, risks, priorities, and their achievement.
Effective communication will help improve trust, collaboration, and coordination between business and IT. It can also help to resolve conflicts and issues.
2. Competency/Value Measurement: This area assesses how well the business and IT measure and demonstrate the value and contribution of IT to the business.
It involves the use of metrics and indicators to evaluate the performance, impact, and benefits of IT investments and services.
3. Governance: This area assesses how IT and business managers work together to set IT priorities, plan for technology, manage risks, and allocate budgets.
It involves the authority, responsibility, and accountability for IT decisions and actions.
4. Partnership: This area assesses the level of collaboration and trust between the business and IT departments in a bid to achieve common goals.
It involves the degree of involvement, engagement, and integration of business and IT in planning, decision-making, and execution.
5. Technology Scope and Architecture: This measures how well the business and IT define and implement the scope and architecture of IT systems and services to support the business processes and strategy.
That is, it assesses the extent to which technology enables business growth, competitiveness, and profitability.
6. Skills: This area measures how well the business and IT have the appropriate skills and competencies to perform their roles and responsibilities.
It measures human resources practices like hiring, retention, training, performance feedback, innovation, encouragement, career opportunities, and individual skill development within IT.
Levels of Strategic Alignment Maturity
According to the Strategic Alignment Maturity Model, there are six areas of alignment maturity: communication, competency/value measurement, governance, partnership, scope and architecture, and skills.
For each of these areas, SAMM classifies the alignment between business and IT into five levels:
1. Level 1: Initial or Ad Hoc Process: Business and IT are not aligned or harmonized.
There is no formal communication, measurement, governance, partnership, scope, or skills development between the two entities.
Decisions related to IT and business are often made in isolation, without a coordinated approach.
2. Level 2: Committed Process: The organization has recognized the need for alignment and has committed to the process.
There is some communication, measurement, governance, partnership, scope, and skills development between business and IT, but they are not consistent or integrated.
So, at this level, the commitment is evident, but the alignment is not yet fully mature.
3. Level 3: Established Focused Process: Strategic alignment maturity is established and focused on business objectives.
At this stage, there is a clear understanding of the strategic value of IT, and planning involves a more structured approach to ensure alignment by integrating IT initiatives with broader organizational goals.
4. Level 4: Improved or Managed Process: IT has evolved into a recognized value center, with applications leveraged across the enterprise to drive process enhancements that sustain competitive advantage.
Continuous improvement and active management of alignment processes and activities are characteristic of this level.
So, at this level, the organization demonstrates a commitment to optimizing the value derived from the intersection of business and IT.
5. Level 5: Optimized Process: Business and IT are fully aligned and harmonized at this pinnacle of maturity. There is seamless communication, measurement, governance, partnership, scope, and skills development between them.
The organization proactively and innovatively uses IT to enable business transformation and create value.
At this level, the alignment is not only comprehensive but also dynamic, adapting to changes in the business environment with agility and foresightness.
