Description: This study, utilizing Preston and Karahanna’s framework for shared vision development and Agency Theory, explores the impact of vision development factors and factors associated with incentive plans on shared vision and alignment. Results of the study confirm the strong relationship between shared vision and alignment, and indicate that having an effective management team is important with respect to developing and maintaining shared vision and alignment within the organization. Several vision development factors such as using the language of the business, participation on the top management team (TMT), and having knowledge of the business impact shared vision through their influence on teamwork. Also, results of this study suggest that participation on the TMT by the CIO/IT leader is more important than the individual’s position in the organizational hierarchy. In addition, attributes associated with incentive plans such as achievable and clear measures, measures linked to organizational goals, measures that align the interests of the individual with those of the organization, regular plan reviews, and using a balanced scorecard approach with respect to incentive plan design positively impact teamwork and shared vision. For practitioners, this highlights the importance of incentive plans as powerful tools that can be used to reinforce shared vision, effective teamwork, and alignment within the organization. Also, the CIO/IT leader needs to be knowledgeable of the business and must fill the role of both a technologist as well as an enterprise leader. This person must be an evangelist communicating the value and benefits of IT to the rest of the organization.
Date: December 2014
Creator: Johnson, Vess L.