Organizational Alignment: The Importance of Information Flow

A company’s organizational alignment to its strategy depends largely on management’s ability to access information to make decisions and take action. Clearly, without access to the right information, the organization cannot operate well. Thus, bringing key information up to points of decision-making benefits managers directly by improving the odds of choosing the right course of action for the unit.  But given the large amount of information available inside and outside the organization, the task can be overwhelming.  To cut to the chase, managers can focus on three types of information flow that confer organizational alignment.



Three types of information flow are essential for an organization to perform effectively.  They are vertical flow, horizontal flow, and frontline flow.

Three Types of Information Flow



Information flow is critical to strategy execution.  The lack of it is one of the biggest hurdles to organizational performance for many companies. Without it, managers and employees are cut off from important information necessary to perform key activities. The organization must be able to rely on vertical flow, horizontal flow, and frontline flow of information to make sure the information is available where needed.  With this understanding, senior management can close information gaps and greatly improve the odds of successful strategy execution.

Further Reading

Is your organization aligned with your strategy? Organizational Alignment: Why Clear Decision Rights Matter Do You Know Why Your Organizational Costs Are Rising? The Importance of Explicit Accountabilities Organizational Alignment: Why Fewer Layers of Management Are Better