Why Business–IT Alignment Matters: The Hidden Cost of Misaligned Processes

In many organizations, technology isn’t the barrier — alignment is. Delivering new systems is often easier than ensuring those systems meaningfully support business objectives. When business and IT teams operate from different assumptions, the hidden costs escalate quickly.

Misalignment commonly appears as project delays, driven by unclear ownership or shifting expectations between departments. These gaps force teams into manual workarounds that drain time and increase variation in how processes are executed. Inefficient or misaligned workflows can reduce organizational productivity dramatically, constraining revenue growth and eroding long-term value. (Target Everest)

Similarly, digital initiatives often underperform when business and IT functions lack a shared strategic roadmap — resulting in measurable value leakage across the organization. McKinsey & Company research highlights this as a major risk in digitization efforts. (McKinsey & Company)

The downstream impact is felt most acutely by customers. Fragmented systems, inconsistent data, and slow service interactions erode customer confidence and loyalty. The framework proposed by Balanced Scorecard — as articulated in The Strategy-Focused Organization — underscores how aligning operations, governance, and strategy enables companies to translate technology investments into superior customer experience and business performance. (Harvard Business School)

Three forces typically reinforce misalignment:

• Technology modernization without process redesign — new tools layered onto old behaviors.

• Weak governance, where priorities drift without unified decision rights or shared KPIs.

• Cultural barriers, especially communication gaps between business and IT.

Ultimately, alignment is a leadership discipline, not a technical task. Executives must jointly define measurable outcomes, communicate consistently, and ensure technology decisions trace back to business goals. Organizations that treat alignment as a strategic imperative deliver faster, serve customers better, and convert technology into sustainable revenue gains.

If your organization is working to strengthen governance, sharpen strategy, or improve alignment, RTS is always available to help guide and support those efforts moving forward.

References

• McKinsey & Company. The case for digital reinvention. February 9, 2017. https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/mckinsey-digital-insights-number-1 (McKinsey & Company)

• “The True Cost of Inefficient Workflows.” Target Everest, July 23, 2025.[NS1]  https://www.targeteverest.com/true-cost-of-inefficient-workflows/ (Target Everest)

• “Real Cost of Inefficient Business Processes (And How to…).” DataCose. https://www.datacose.com/blog/inefficient-business-processes (DataCose)

• Kaplan, Robert S., and Norton, David P. The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. 1st Edition, 2001. Thriftbooks.com