Page 80 - Performance Leadership

Chapter 5 Operational and Analytical Alignment • 69

Aligning Operational and Analytical Dimensions

If implemented well, the two loops of management allow for double-
loop learning, as well as for management control. However, this can
only happen if the loops are integrated. In many organizations, there
are countless processes, systems, and reports on the operational dimen-
sion, and even more presentations, studies, systems, and money spent
on the analytical dimension. But these dimensions are often discon-
nected. This makes it hard to implement new strategies or apply quick
course changes from the analytical dimension to the operational
dimension. It makes it equally hard to escalate operational issues to the
analytical dimension in a structured and reliable way. I refer to dis-
connected loops as the “donut model” and to the connected loops as
the “pretzel model” (see Figure 5.2).
The donut model represents the classical approach to strategic man-
agement and strategy implementation. A new strategy is implemented,

F igur e 5.2
The Unaligned (Donut-Shaped) Loops of Management versus the Aligned
(Pretzel-Shaped) Loops of Management

Management Analytical
dimension
Operational
dimension

Process

Donut-Shaped Loops of Management
Management
Analytical
dimension

Operational
dimension
Process

Pretzel-Shaped Loops of Management