I was recently working with a CIO that wanted to know what “operational alignment” truly meant, and how it could affect a sourcing decision.  This client was weighing the pros and cons of outsourcing versus a shared services solution.  The CIO felt that with either solution, the new retained organization had already been defined, and that meant the company had already had achieved operational alignment.  While having the retained organization defined and ready to implement is an important step in the sourcing journey, it is not a component of having operational alignment.

As we walked down the hall to the CEO’s office, I quickly explained the three critical elements to achieving operational alignment:

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