How to Align IT Strategy with Business Objectives

Technology defines the way modern businesses operate. Behind the scenes, IT teams maintain and scale the systems businesses rely on to get work done. Though IT strategy often has a direct impact on operational performance, IT is often an afterthought when it comes to building business strategy. Aligning business goals with the IT roadmap ensures that technology investments deliver business results, increase efficiency across the organization, and drive innovation that provides a competitive edge. 

In this article, we’ll explore why IT-business alignment matters and the steps you can take to achieve it. 

What Does Business and IT Alignment Actually Mean? 

IT-business alignment is a collaborative process that embeds IT strategy and innovation into overarching business goals. When IT is aligned with the business, the organization can leverage IT as a strategic driver of outcomes like revenue growth, customer experience, and cost reduction. In turn, IT strategy is informed by business goals and responds to the changing needs of the organization as it expands. 

Many leaders see IT as a supportive function rather than a key business unit that can contribute to larger outcomes. IT is often relegated to reactivity: troubleshooting issues, keeping systems running, and searching for solutions only when something goes wrong. Working towards business and IT alignment redefines IT’s role in the organization. Alignment empowers IT team members to make proactive technology decisions with business goals in mind and ensures that leaders understand how new and existing technology can support their vision for the business. 

Why IT-Business Alignment is Essential for Growth

Digital systems underpin every aspect of modern business. From internal collaboration tools like email and Microsoft Teams to customer relationship management (CRM) solutions, business intelligence (BI) platforms, and enterprise resource planning (ERP) software, businesses simply can’t operate without technology. 

Investing in a digital transformation strategy is no longer optional, it’s a competitive advantage that defines business success and longevity. Nearly 90% of businesses in the US reported improvements in profitability and performance from their digital transformation initiatives in 2024. Organizations that pull ahead view technology with a product mindset and understand the business value of new solutions from the beginning. Business and IT alignment ensures that technology investments empower teams to work more efficiently, market products and services effectively, exceed customers’ expectations, and get insight into performance so they can make improvements. 

A lack of alignment between the IT roadmap and business objectives holds companies back. This can look like teams relying on legacy reporting systems that silo important decision-making insights because the business hasn’t allocated a budget for a migration. Another example is IT building or purchasing tools that don’t fit into real-world workflows because they don’t have visibility into what other teams need to succeed. Clear communication and collaborative strategy allow IT to deliver solutions that effectively eliminate roadblocks and power productivity. 

7 Ways to Align IT Strategy and Business Strategy

Here are a few steps you can take to bring your IT strategy into alignment with your business objectives:

1. Communicate Business Priorities—and the Needs of the Team 

It’s critical that IT operates from an understanding of overarching business goals. IT team members should be encouraged to make decisions with business objectives in mind and be able to discuss their activities in the context of business strategy. IT teams also need to know how their work impacts other teams. There should be a feedback loop that gives IT insight into how their coworkers are using digital tools so that they can provide support and tailor solutions for the way teams operate. 

2. Map IT Capabilities to Business Outcomes

Business leaders and IT teams need to work together to connect IT activities to business results. Identify ways in which IT enables the business to generate revenue, increase customer satisfaction, reduce risk, and lower operating costs. Link IT performance to the efficiency and productivity of every team to get a full picture of IT’s role in the value chain. For example, IT might roll out CRM automation for customer service teams, helping them access customer details faster to provide a more seamless and personalized experience that ultimately lowers churn. An IT professional services provider like IX Solutions can help you better understand how IT initiatives translate into business value.

3. Define IT KPIs in the Context of Business Metrics

IT performance should be measured against the business outcomes it helps the organization achieve. For example, teams might want to look at system downtime or cyber incident recovery time as they correlate to revenue impact Likewise, the performance of new technology investments or updates should be measured in terms of time-to-market, adoption rates within the organization, and cost or labour savings. 

4. Understand Operations from an IT Perspective

IT teams have a front row seat to what’s working and what isn’t in an organization’s digital environment. They’re the ones who handle support tickets coming in from every department. They’re responsible for responding to cyberattacks and fixing issues. When IT is struggling to keep up, it could be a symptom of larger problems within the company’s current digital systems. Business leaders need to look at operations through their IT team’s eyes to identify risks and inefficiencies as well as opportunities to drive down cost. 

5. Involve IT in Planning from the Outset

IT should be at the decision-making table to determine how the IT roadmap can support the next evolution of the company. Rather than asking IT to come up with solutions after planning wraps up, IT can present possibilities and highlight opportunities during the planning process. IT teams can identify existing technology resources to save time and cost down the road. They can also present emerging technology options that can help the business gain an additional competitive advantage. 

6. Establish a Shared Language

Effective communication is at the heart of IT-business alignment. It’s not always easy for IT experts to translate technical concepts into language business leaders understand. IT teams should focus on communicating how technical details influence the results leadership cares about and share how solving technical challenges addresses problems that are relevant to the business as a whole. Avoid using technical jargon and speak in terms of value creation, clear processes, and tangible outcomes.

7. Cultivate a Culture of Collaboration

In practice, true business and IT alignment requires a culture of collaboration within your organization. This means creating standardized processes for communicating information and sharing ideas, such as regular strategy meetings and check-ins. Establish cross-functional teams that are responsible for blending business and IT strategy and can take ownership of driving business outcomes through IT activities. Actively acknowledge the role IT plays in company wins and ensure that IT team members are recognized for the positive impact of their work. Consider collaboration a KPI and create space for open dialogue around improving the collaborative process to maintain alignment as even as business priorities shift.

Avoiding Pitfalls That Lead to Misalignment 

IT-business alignment won’t happen overnight. It requires a shift in mindset around the role of IT in the business and necessitates change management at different levels of the organization. Getting ahead of common challenges can help you stay on track. Here’s how to address potential pitfalls that could stall your progress or derail your alignment ambitions altogether:   

• Lack of Trust and Buy-In from Executives — Make the business case for alignment by highlighting how IT is already supporting business outcomes. Have leaders talk about what matters to them and what their goals are to uncover common ground. Trial an IT initiative to model how alignment could play out on a larger scale.

• Unrealistic Expectations Around Technology Capabilities — Business leaders might not fully understand the possibilities and limitations of the technology that’s available. It’s up to IT leaders to set expectations from the start and create a roadmap for achieving business leaders’ vision as technology evolves.

• Challenges Measuring the Financial or Operational Impact of IT — IT leaders will need to work closely with business analysts or financial specialists in the organization and leverage data to understand how technology impacts business outcomes. This is an ongoing process that should be a core feature of the IT-business collaboration. IT performance reporting should be iterative and optimized as the business grows.

• Investing in Trends without a Clear Plan for Value Creation — While business leaders might get excited about new developments in the technology industry, IT leaders are responsible for investigating whether the latest trends are the right fit for the company. Before adopting new technology, IT and business leaders must work together to determine what outcomes the solution should provide and how to measure success.

• Unclear Roles and No Accountability — Business and IT alignment might require changes in the chain of command. It’s essential that leaders and team members understand what they’re responsible for and who they report to. Determine who will own which aspects of the collaborative process, who will lead initiatives, and who will report progress and be held accountable when goals aren’t met. 

Align Your IT Roadmap with Your Business Strategy

Unifying IT strategy and business strategy increases efficiency, reduces costs, and gives growing organizations a significant competitive advantage. Establishing alignment and creating a collaborative culture across leadership and IT teams can be a challenge. Getting IT involved in business decision-making and demonstrating the impact IT has on operations to business leaders inspires buy-in. 

Looking for ways to drive business results through your IT initiatives? Book a strategy session to explore how your IT roadmap can better support your business growth >