Stage 2 of the Misalignment Cascade™: Fragmented Interpretation
Fragmented Interpretation is the stage where misalignment becomes distributed.
The strategy still exists. The intent is still shared.
No one believes the organization is “off track.”
And yet, the organization is no longer operating from one understanding of value. Each function has translated strategy into a version that makes sense locally. Each version is rational, but together, they are incompatible.
Fragmented Interpretation is how organizations become Almost Aligned™, meaning they are unified on the surface, but divergent underneath.
Fragmented Interpretation occurs when teams are forced to complete an underspecified strategy on their own.
Following Strategic Ambiguity, strategy lacks decision logic and priorities are loosely defined. Each function fills in the gaps using its own incentives, metrics, and mental models. Product, marketing, and sales teams will all look to fill it in the way that makes sense to them. But none of the answers are coordinated.
This is not misbehavior.
It is people making sense of things in the absence of shared structure.
Fragmented Interpretation creates the Almost Aligned state. Almost Aligned organizations exhibit:
Agreement on Outcomes | Disagreement on Rationale
Shared Objectives | Divergent Priorities
Consistent Language | Inconsistent Meaning
Product
Marketing
Sales
Each function is solving its own problem.
Collectively, you are solving different problems.
Why Fragmented Interpretation Is Inevitable Without a System
Organizations often try to fix this stage with more meetings, better handoffs, and shared planning sessions.
These help temporarily, but they do not scale. Why? Because Fragmented Interpretation is not caused by lack of shared decision logic.
Without a system that defines what value means, how tradeoffs are resolved, and which priorities dominate under conflict…
Interpretation will always fragment as complexity increases.
Heroics feel like leadership.
Heroics don’t scale.
When leaders become the translation layer, alignment no longer scales beyond their direct involvement. Decisions are unable to be made quickly. Dependence on individuals increases. Bottlenecks become normal.
This is one of the clearest signals that Fragmented Interpretation is active.
Fragmented Interpretation creates the conditions for Conflicting Execution, the next stage of the Misalignment Cascade.
At that point, misalignment becomes visible,but far harder to unwind.
Fragmented Interpretation in AI-Enabled Organizations
AI dramatically intensifies Fragmented Interpretation.
AI accelerates localized optimization, enables teams to move faster independently, reduces friction between intent and output.
When interpretation is fragmented, AI scales divergence.
Instead of one misaligned execution, organizations get many fast, conflicting executions — each amplified by automation.
AI makes Fragmented Interpretation impossible to ignore, and impossible to contain, without a shared operating system.
Verify whether interpretation is already diverging.
Fragmented Interpretation rarely announces itself. The Strategic Misalignment Diagnostic™ helps leadership teams see where strategy is being completed differently across product, marketing, and sales — and where execution is already drifting, even if results haven’t broken yet.
The Misalignment Cascade™ provides a diagnostic lens for understanding why organizations struggle to execute strategy at scale. Each stage is predictable, preventable, and correctable, but only when alignment is treated as infrastructure.