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Fundamentals

Ninety percent of strategic plans never truly get off the ground, becoming relics of boardroom discussions rather than blueprints for action. This isn’t some abstract corporate malady; it’s a very real ailment plaguing small and medium businesses. Consider the local bakery dreaming of expansion, investing in a state-of-the-art oven, only to realize their staff lacks the training to operate it efficiently, or their marketing efforts still target their original, smaller customer base. This disconnect, this chasm between aspiration and execution, highlights a fundamental truth often overlooked in the entrepreneurial rush ● isn’t a luxury; it’s the oxygen that breathes.

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The Misalignment Mirage

Many SMB owners operate under the illusion of agility, believing their smaller size inherently grants them an advantage in adapting and implementing changes swiftly. This can be a dangerous misconception. Agility without direction is just frantic motion. Imagine a ship with a nimble crew, capable of rapid turns and adjustments, yet lacking a compass or a clear destination.

Such a vessel, while agile, is ultimately at the mercy of currents and winds, likely to drift aimlessly or, worse, run aground. Similarly, an SMB, no matter how adaptable its team, will falter if its actions aren’t strategically aligned with its overarching goals. Misalignment manifests in various forms, from marketing campaigns that don’t resonate with the core brand identity to operational changes that contradict the company’s value proposition. These seemingly minor deviations accumulate, creating friction, wasting resources, and ultimately derailing implementation efforts before they can gain momentum.

Strategic alignment isn’t a theoretical concept; it’s the practical bridge connecting a business’s vision to its daily operations.

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Defining Strategic Alignment Simply

At its core, strategic alignment is about ensuring everyone in the business, from the owner to the newest recruit, is rowing in the same direction. It means that every department, every team, every individual understands the overarching strategic goals and how their specific roles contribute to achieving them. Think of it as a well-coordinated orchestra. Each musician, with their unique instrument and part, contributes to a unified, harmonious performance because they are all playing from the same score, under the same conductor’s direction.

In a business context, the strategic plan is the score, and leadership acts as the conductor, guiding the various departments ● marketing, sales, operations, finance ● to play their parts in concert. When alignment is present, marketing campaigns support sales objectives, operational processes enhance customer service, and financial decisions fuel strategic growth. Conversely, misalignment creates dissonance, with departments working at cross-purposes, leading to wasted effort and diminished results.

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Why Alignment Matters for SMB Implementation

For SMBs, the stakes are particularly high. Limited resources, tighter margins, and increased vulnerability to market fluctuations mean that every implementation effort must count. Strategic alignment becomes the multiplier effect, amplifying the impact of every action and investment. Consider a small retail store implementing a new point-of-sale system.

Without strategic alignment, the implementation might focus solely on the technical aspects ● installing the software and training staff on its basic functions. However, with strategic alignment, the implementation becomes a holistic project. The store owner considers how the new system can improve customer experience, streamline inventory management, and provide valuable data for future marketing decisions. Training is extended beyond basic operation to include data analysis and enhancements.

Marketing materials are updated to reflect the improved customer experience. Finance allocates budget not just for the system itself but also for ongoing training and system optimization. This aligned approach transforms a simple system upgrade into a strategic initiative that drives tangible business benefits, far exceeding the sum of its individual parts.

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Practical Steps to Begin Aligning Strategy

Starting the journey toward strategic alignment doesn’t require complex frameworks or expensive consultants. It begins with simple, practical steps that any SMB owner can implement immediately.

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Communicating the Vision Clearly

The first step is ensuring the is not locked away in a dusty business plan but is a living, breathing document understood by everyone. This means communicating the vision in clear, concise language, avoiding corporate speak and focusing on the ‘why’ behind the business goals. Instead of stating, “We aim to increase market share by 15%,” explain, “We want to become the go-to provider in our community because we believe everyone deserves access to high-quality, affordable [your product/service].” This resonates more deeply with employees and provides a meaningful context for their daily tasks. Regular team meetings, informal discussions, and visual aids like posters or intranet pages can reinforce the strategic vision and keep it top-of-mind.

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Setting Aligned Objectives

Once the vision is clear, the next step is translating it into specific, measurable, achievable, relevant, and time-bound (SMART) objectives for each department and team. These objectives should directly support the overarching strategic goals and be clearly communicated to those responsible for achieving them. For example, if the strategic goal is to improve customer satisfaction, the marketing team’s objective might be to increase positive online reviews by 20% in the next quarter, while the customer service team’s objective could be to reduce customer complaint resolution time by 15%. These objectives are not isolated tasks; they are interconnected pieces of the strategic puzzle, each contributing to the larger picture of improved customer satisfaction.

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Fostering Open Communication

Strategic alignment isn’t a top-down mandate; it’s a collaborative process that requires open communication and feedback at all levels. Creating channels for employees to ask questions, voice concerns, and share ideas is crucial. This can be achieved through regular feedback sessions, suggestion boxes, or even informal ‘ask me anything’ sessions with leadership.

When employees feel heard and valued, they are more likely to be engaged and committed to the strategic goals. Open communication also allows for early identification of potential misalignments or roadblocks, enabling timely course correction and preventing minor issues from escalating into major implementation failures.

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Regularly Reviewing and Adapting

The business landscape is constantly evolving, and strategic plans should not be static documents. Regularly reviewing progress against objectives, assessing the effectiveness of implementation efforts, and adapting the strategy as needed is essential. This could involve monthly performance reviews, quarterly strategic alignment meetings, or even more frequent check-ins depending on the pace of change in the industry.

These reviews are not about assigning blame but about learning from both successes and failures, identifying areas for improvement, and ensuring the strategy remains relevant and aligned with the evolving business environment. Strategic alignment is not a one-time fix; it’s an ongoing process of communication, adaptation, and continuous improvement, a constant recalibration to ensure the business stays on course toward its desired destination.

Strategic alignment, at its most fundamental level, is about common sense. It’s about ensuring that the energy and effort within an SMB are focused and directed toward a shared purpose. It’s about eliminating wasted motion, maximizing resources, and creating a cohesive, high-performing organization. For SMBs embarking on any implementation, from adopting new technology to expanding into new markets, strategic alignment is not merely beneficial; it’s absolutely indispensable for success.

Intermediate

While the concept of strategic alignment appears straightforward, its practical application within often reveals a more complex reality. Consider the statistic that, even among companies with documented strategic plans, only a fraction effectively translate those plans into operational execution. This gap isn’t simply due to a lack of understanding; it often stems from a failure to appreciate the multi-dimensional nature of strategic alignment and its intricate interplay with organizational culture, automation initiatives, and the very growth trajectory of the SMB itself. Moving beyond the foundational understanding, we must explore the intermediate layers of strategic alignment, examining its role as a dynamic, adaptive force that shapes implementation success in increasingly complex business environments.

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Beyond Simple Direction ● Alignment as a Dynamic System

Strategic alignment is frequently portrayed as a linear process ● define the strategy, communicate it, and execute. This linear view, while conceptually useful for beginners, overlooks the dynamic, feedback-driven nature of effective alignment. In reality, strategic alignment operates more like a complex adaptive system, constantly adjusting and recalibrating based on internal and external factors. Imagine a sophisticated thermostat controlling the temperature of a building.

It doesn’t simply turn the heating or cooling system on and off; it continuously monitors the temperature, anticipates fluctuations, and adjusts the system output to maintain the desired climate. Similarly, strategic alignment requires ongoing monitoring of implementation progress, to identify deviations, and adaptive mechanisms to realign actions with the strategic direction. This dynamic perspective acknowledges that strategies are not static blueprints but rather evolving hypotheses that need to be tested, refined, and sometimes fundamentally revised in response to real-world feedback. For SMBs navigating rapid growth or disruptive market changes, this adaptive capacity of strategic alignment becomes paramount.

Strategic alignment, at an intermediate level, transforms from a static concept into a dynamic system, requiring constant monitoring and adaptation to ensure sustained implementation success.

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The Cultural Dimension of Alignment

Strategic alignment is not solely about processes and objectives; it is deeply intertwined with organizational culture. A culture that promotes open communication, collaboration, and accountability is fertile ground for strategic alignment to flourish. Conversely, a culture characterized by silos, fear of failure, or lack of transparency can actively undermine even the most well-defined strategic plans. Consider two SMBs in the same industry, both implementing similar automation technologies.

One, with a culture of open communication and employee empowerment, successfully integrates the new technology, leveraging employee feedback to optimize processes and overcome implementation challenges. The other, with a more hierarchical and risk-averse culture, encounters resistance to change, struggles with knowledge sharing, and ultimately fails to realize the full potential of the automation investment. This illustrates that strategic alignment is not merely a matter of strategic documents and implementation plans; it is fundamentally shaped by the underlying cultural fabric of the organization. Building a culture that supports alignment requires conscious effort, from fostering leadership behaviors that encourage open dialogue to implementing mechanisms for and recognizing and rewarding behaviors that contribute to collective strategic goals.

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Alignment and Automation ● A Symbiotic Relationship

Automation, increasingly accessible and crucial for SMB growth, presents both opportunities and challenges for strategic alignment. When strategically aligned, can significantly amplify implementation success, streamlining processes, improving efficiency, and freeing up human capital for higher-value activities. However, automation implemented without strategic alignment can exacerbate existing misalignments, automating inefficiencies or even creating new points of friction. Imagine an SMB automating its customer service function with a chatbot, but without aligning this automation with its overall strategy.

If the chatbot is poorly designed, provides generic responses, or fails to seamlessly escalate complex issues to human agents, it can actually degrade customer satisfaction, contradicting the strategic goal of enhancing customer relationships. Therefore, successful automation implementation hinges on strategic alignment, ensuring that automation initiatives are not isolated projects but rather integral components of a broader strategic vision. This requires carefully considering how automation technologies support strategic objectives, involving relevant stakeholders in the automation planning process, and continuously monitoring and optimizing automated processes to ensure they remain aligned with evolving strategic priorities.

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Measuring and Monitoring Alignment ● Key Performance Indicators

Moving from conceptual understanding to practical application requires establishing mechanisms to measure and monitor strategic alignment. This involves identifying (KPIs) that reflect the degree of alignment across different dimensions of the business. These KPIs should not be limited to financial metrics but should also encompass operational efficiency, customer satisfaction, employee engagement, and innovation indicators. For example, to measure alignment in customer service, KPIs could include scores, customer retention rates, and first-call resolution rates.

To assess alignment in automation initiatives, KPIs might track process efficiency gains, error reduction rates, and employee feedback on automation effectiveness. Regularly tracking and analyzing these KPIs provides valuable insights into the health of strategic alignment, highlighting areas where alignment is strong and areas requiring attention. These data-driven insights then inform adaptive adjustments to implementation plans, communication strategies, or even the itself, ensuring that alignment remains a dynamic and effective force driving implementation success.

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Intermediate Strategies for Enhancing Alignment

Building upon the foundational steps, intermediate strategies for enhancing strategic alignment involve more sophisticated approaches, focusing on cross-functional collaboration, process optimization, and leadership development.

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Cross-Functional Alignment Initiatives

Breaking down departmental silos and fostering cross-functional collaboration is crucial for achieving holistic strategic alignment. This can be facilitated through initiatives such as cross-functional project teams, joint planning sessions, and shared performance metrics. For example, when implementing a new marketing campaign, involving representatives from sales, operations, and customer service in the planning process ensures that the campaign is aligned with sales targets, operational capabilities, and customer service standards.

Regular cross-functional meetings to review progress, share insights, and address challenges further strengthen alignment and prevent departmental silos from undermining strategic objectives. These initiatives cultivate a shared sense of ownership and collective responsibility for strategic success, moving beyond departmental perspectives to a unified organizational focus.

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Process Optimization for Alignment

Streamlining and optimizing key business processes is another powerful lever for enhancing strategic alignment. Processes that are inefficient, redundant, or poorly documented can create bottlenecks, miscommunications, and deviations from strategic objectives. Process mapping, value stream analysis, and lean methodologies can be employed to identify and eliminate process inefficiencies, ensuring that workflows are aligned with strategic priorities.

For instance, optimizing the order fulfillment process to reduce lead times and improve accuracy directly supports a strategic goal of enhancing customer satisfaction and operational efficiency. Process optimization, when viewed through the lens of strategic alignment, becomes not just about cost reduction but about creating streamlined, strategically focused workflows that drive implementation success.

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Leadership Alignment and Cascade

Strategic alignment starts at the top. Leadership teams must be not only aligned themselves but also actively champion alignment throughout the organization. This requires leadership development initiatives focused on strategic thinking, communication skills, and the ability to cascade strategic messages effectively down through the organizational hierarchy.

Leadership training programs can equip managers with the tools and techniques to translate overarching strategic goals into team-level objectives, communicate the strategic rationale to their teams, and foster a culture of alignment within their departments. When leadership at all levels consistently reinforces the strategic vision and demonstrates commitment to alignment, it creates a powerful ripple effect, embedding strategic alignment into the very fabric of the organization.

Moving to the intermediate level of understanding strategic alignment reveals its multifaceted nature and its deep integration with organizational culture, automation, and operational processes. It is not a static checklist but a dynamic system requiring constant attention, measurement, and adaptation. For SMBs seeking sustained growth and successful implementation in an increasingly complex business landscape, mastering these intermediate dimensions of strategic alignment becomes a critical competitive advantage.

Advanced

The discourse surrounding strategic alignment often plateaus at the intermediate level, focusing on and process optimization. However, a truly advanced understanding necessitates a deeper exploration into the cognitive and behavioral dimensions of alignment, particularly within the context of Small and Medium Businesses navigating the turbulent waters of rapid automation and scalable growth. Consider the stark reality ● even with sophisticated tools and frameworks, strategic implementation failure rates remain stubbornly high.

This persistent challenge suggests that the root causes of misalignment are not merely procedural or cultural, but are often embedded in deeper, less tangible aspects of organizational behavior and decision-making. At this advanced level, we must dissect strategic alignment as a complex, multi-layered construct, influenced by cognitive biases, organizational dynamics, and the very nature of in the contemporary SMB landscape.

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Cognitive Alignment ● Shared Mental Models and Strategic Consensus

Strategic alignment, at its most profound level, is about cognitive alignment ● the degree to which individuals within an organization share a common understanding of the strategic landscape, the organizational goals, and the pathways to achieve them. This shared understanding goes beyond simply communicating the strategic plan; it involves fostering shared mental models, collective sensemaking, and genuine strategic consensus. Imagine a team of mountaineers attempting to summit a challenging peak. If each climber has a different mental map of the terrain, a different understanding of the optimal route, and a different assessment of the risks, their chances of success are drastically diminished, regardless of their individual skills or equipment.

Similarly, in an SMB, if key decision-makers and implementers operate with divergent mental models of the strategic environment, misalignment is almost inevitable. Fostering cognitive alignment requires more than just disseminating information; it demands creating opportunities for dialogue, debate, and collaborative sensemaking, allowing individuals to challenge assumptions, refine their understanding, and collectively construct a shared mental model of the strategic reality. This cognitive dimension of alignment is particularly critical in SMBs, where rapid growth and automation often introduce new complexities and uncertainties that demand collective cognitive adaptation.

Advanced strategic alignment delves into the cognitive realm, emphasizing shared mental models and strategic consensus as the bedrock of effective implementation.

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Behavioral Alignment ● Incentives, Motivation, and Strategic Action

Cognitive alignment, while essential, is insufficient without behavioral alignment ● the translation of shared understanding into consistent, strategically aligned actions across the organization. Behavioral alignment is shaped by a complex interplay of incentives, motivation, and organizational structures that either reinforce or undermine strategic objectives. Consider an SMB that espouses a customer-centric strategy but whose sales team is incentivized solely on closing deals, regardless of customer satisfaction or long-term relationships. This misalignment between stated strategy and behavioral incentives will inevitably lead to suboptimal customer experiences and erode customer loyalty, despite the organization’s cognitive understanding of customer centricity.

Achieving behavioral alignment requires carefully designing incentive systems, frameworks, and organizational structures that actively promote and reward strategically aligned behaviors. This involves moving beyond simplistic, short-term metrics to encompass measures that reflect long-term strategic impact, fostering intrinsic motivation through purpose-driven work, and creating organizational structures that facilitate collaboration and accountability for strategic outcomes. In the context of SMB automation, behavioral alignment becomes even more critical, as automation initiatives can inadvertently create unintended behavioral consequences if not carefully designed to reinforce strategic objectives and employee motivation.

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The Paradox of Alignment in Dynamic SMB Environments

SMBs, particularly those experiencing rapid growth or undergoing significant automation, often face a paradoxical challenge ● the need for both strategic alignment and organizational agility. Excessive rigidity in strategic alignment can stifle innovation, hinder adaptation to changing market conditions, and create bureaucratic inertia, precisely the opposite of the agility SMBs often pride themselves on. Conversely, a complete lack of strategic alignment can lead to chaos, wasted resources, and a drift away from core strategic objectives. Navigating this paradox requires a nuanced approach to strategic alignment, one that embraces flexibility, adaptability, and iterative refinement.

Imagine a sailboat navigating a windy sea. The captain must maintain a clear course (strategic alignment) but also constantly adjust the sails and rudder (organizational agility) to respond to changing wind conditions and waves. Similarly, SMBs need to establish a clear strategic direction but also empower teams to adapt their implementation approaches, experiment with new solutions, and provide feedback that can inform strategic course correction. This dynamic balance between alignment and agility is a hallmark of advanced strategic thinking in the SMB context, requiring leadership to foster a culture of both strategic discipline and entrepreneurial experimentation.

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Strategic Leadership and the Orchestration of Alignment

At the advanced level, strategic alignment is not simply a management function; it is a core leadership imperative. Strategic leaders in SMBs play a critical role in orchestrating cognitive and behavioral alignment, navigating the paradox of alignment and agility, and fostering a culture of strategic ownership throughout the organization. This leadership role extends beyond setting the strategic direction; it involves actively shaping shared mental models, designing aligned incentive systems, fostering open communication and feedback loops, and empowering teams to take ownership of strategic implementation.

Effective strategic leaders in SMBs are not just visionaries; they are also skilled communicators, facilitators, and coaches, capable of translating abstract strategic concepts into concrete actions, fostering collective commitment to strategic goals, and creating an organizational environment where strategic alignment becomes a self-sustaining dynamic. In the age of rapid automation and digital transformation, this strategic leadership role becomes even more critical, as SMB leaders must guide their organizations through complex technological transitions while maintaining strategic focus and fostering a culture of continuous adaptation and alignment.

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Advanced Tools and Frameworks for Strategic Alignment

While the fundamental principles of strategic alignment remain constant, advanced approaches leverage more sophisticated tools and frameworks to enhance cognitive and behavioral alignment, particularly in complex SMB environments.

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Scenario Planning and Strategic Foresight

To foster shared mental models and cognitive alignment in the face of uncertainty, advanced SMBs utilize and strategic foresight techniques. These methods involve developing multiple plausible future scenarios, analyzing their potential implications for the business, and crafting strategic responses for each scenario. This process not only enhances strategic preparedness but also fosters shared understanding of the strategic landscape, challenges assumptions, and promotes collective sensemaking among key decision-makers. By engaging in scenario planning, SMBs can move beyond reactive strategizing to proactive anticipation, building cognitive resilience and enhancing their ability to adapt to unforeseen changes while maintaining strategic alignment.

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Organizational Network Analysis (ONA)

To understand and influence behavioral alignment, advanced SMBs are increasingly employing (ONA). ONA provides insights into the informal communication and collaboration patterns within an organization, revealing hidden networks of influence, knowledge sharing bottlenecks, and potential points of misalignment. By mapping these informal networks, leaders can identify key influencers, bridge communication gaps, and design interventions to foster more effective collaboration and knowledge flow in support of strategic objectives. ONA offers a data-driven approach to understanding and shaping organizational behavior, enabling leaders to move beyond anecdotal observations to a more nuanced and evidence-based approach to behavioral alignment.

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Dynamic Performance Management Systems

To drive behavioral alignment and adapt to dynamic environments, advanced SMBs are moving towards dynamic performance management systems. These systems go beyond traditional annual performance reviews to incorporate more frequent feedback loops, real-time performance data, and adaptive goal-setting mechanisms. Dynamic performance management allows for continuous monitoring of progress against strategic objectives, rapid identification of deviations, and timely adjustments to individual and team goals in response to changing business conditions. This approach fosters a culture of continuous improvement, accountability, and strategic responsiveness, ensuring that performance management actively reinforces strategic alignment in a dynamic and evolving context.

At its most advanced level, strategic alignment transcends simple organizational coordination and becomes a deeply ingrained cognitive and behavioral dynamic. It requires strategic leaders to act as orchestrators of shared understanding, shapers of aligned behaviors, and navigators of the inherent paradox of alignment and agility in dynamic SMB environments. By embracing advanced tools and frameworks and cultivating a culture of strategic ownership, SMBs can unlock the full potential of strategic alignment, transforming it from a conceptual ideal into a powerful engine for sustained implementation success and competitive advantage in the complex business landscape of the 21st century.

References

  • Kaplan, Robert S., and David P. Norton. The Balanced Scorecard ● Translating Strategy into Action. Harvard Business School Press, 1996.
  • Mintzberg, Henry. The Rise and Fall of Strategic Planning. Free Press, 1994.
  • Senge, Peter M. The Fifth Discipline ● The Art & Practice of the Learning Organization. Doubleday/Currency, 1990.
  • Porter, Michael E. Competitive Strategy ● Techniques for Analyzing Industries and Competitors. Free Press, 1980.

Reflection

Perhaps the most uncomfortable truth about strategic alignment is that its pursuit is often framed as a quest for perfect harmony, a flawlessly synchronized organizational machine. This ideal, while appealing in theory, can be deceptively counterproductive in practice, especially for SMBs. The relentless pursuit of absolute alignment can inadvertently stifle the very dissent, creative friction, and healthy internal debate that are often the wellspring of innovation and adaptation. A truly strategically agile SMB might, paradoxically, benefit from pockets of constructive misalignment ● areas where individuals or teams are encouraged to challenge the status quo, explore alternative approaches, and even, at times, row slightly out of sync with the prevailing strategic current.

This isn’t an argument for strategic anarchy, but rather a recognition that in complex, dynamic environments, a degree of managed misalignment can be a source of organizational resilience and a catalyst for strategic evolution. The challenge then shifts from achieving perfect alignment to cultivating ‘optimal misalignment’ ● a delicate balance where strategic direction is clear, but the pathways to achieving it remain open to exploration, experimentation, and even, strategically valuable, deviation.

Strategic Alignment, Implementation Success, SMB Growth
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