Dynamic Alignment is a holistic approach to developing strategy, designing operations and building internal capability in an organisation.
The core concept of Dynamic Alignment is that organisational performance is optimised when the strategy and internal capability of the organisation is ‘aligned’ with the marketplace in which it operates. It maintains that the only viable starting point for deciding the direction, and developing the capability of the business, is customers.
By interpreting the different types of customer behaviour and by understanding the dynamic nature of customer behaviour, the business is able to derive the most appropriate (cost effective) responses (strategies) and come to understand which are the most effective business culture and leadership capability to deliver these strategies.
Essentially this is an ‘outside-in’ approach, which argues that ‘fit’ with the market and the operating environment is the key to sustainable performance.
Dynamic alignment is new to the red meat industry as it does not currently segment based on buyer behaviour.
The most common segmentation that currently occurs is based on geographical location and strategies are often regionally based. While this is not necessarily incorrect, Dynamic Alignment suggests there is additional value in aligning strategies to behavioural segments.
The meat industry also has the added challenge of being in the disassembly business and needing to balance the sale of the entire carcase often to different market segments, from both a geographical and a behavioural point of view.
As a result of the pilots conducted, the Dynamic Alignment approach has been found to add value at several levels including:
- all sectors of the industry, including producers, feed lots, processors and value added suppliers, able to understand their markets and develop more effective and market-aligned strategies
- each sector is able to more fully understand their supply base, and recognise that one-size-fits all procurement can be limiting (and having a range of procurement strategies can be more productive)
- creation of more effective alignment between different parties in the supply chain through better understanding of each other’s business drivers
- providing a framework through which to develop strategic alliances between two or more supply chain partners
- successfully extend a company's innovation strategy from being internally focused to customer focused. By applying Dynamic Alignment companies will be able to modify and extend their innovation strategies to ensure that it is appropriately tailored to segments of customers. This will enable companies to build their internal capability and to better target their innovation response.