How to achieve organizational effectiveness

If we asked successful CEOs about the meaning of organizational effectiveness we would find different definitions but the most accurate one will be found inside the company and in the way it manages the current business environment.

Nowadays, apart from having a good business plan, all companies require an effective and efficient plan describing any single aspect the company has to take into account to achieve the organizational effectiveness. The project should be clear and should allow the assessment of the performance by comparing the KPIs most applicable to the organization.

The senior management leadership will allow the execution of both plans. The management style should flow top-down fostering a results-oriented organizational culture and the development to the execution capacity.

To know if the company has achieved the organizational effectiveness we must monitor if the current results are relevant for creating value and are coherent with the vision.

In the current economic environment all changes are very rapid which proves the responsiveness, utilization and adaptation to the emerging opportunities. With this regard, by knowing how to measure and adjust the action plan based on the perceived value for all the stakeholders is evident that the company will learn, as the vast majority of employees will be receptors and actors of the change that is required.

In my opinion this is the only way to manage the transformation, which is the result to achieve the organizational effectiveness. The organizational effectiveness is a direct result of the interaction of processes, system, risks, structure, culture, people, etc in a way the company is developed by putting in action some critical elements as follows:

·         The dynamic nature of short and long term objectives outlined in the strategic process

·         The focus on the customer

·         The alignment of goals, objectives, incentives, and people

·         The leadership of senior management impacting the results

·         The alignment of the talent to the critical positions to have the right people in the right roles

·         The assessment of the performance at all levels

·         Identify potential improvements and carry out those improvements

The action plan should include the intelligent management of all risks, innovation, take advantage of the big data, problem solving scenarios, continuous improvement and the adaptation of the activities leading to the strategic goal, as this is the only way to be better than the competitors  in the market place and in addition to achieve a superior performance.

The action of all the above elements implies a strong commitment from senior executives and other management levels to make things happen in the right moment and with the available talent. Just to remember an organization is simply a group of people, the human capital, so each person can contribute to the effectiveness by developing the talent and skills.

If the organization has capable and committed employees those employees should lead the more important activities so less capable employees are challenged and therefore prompted to leave their comfort zone creating a culture focused on accomplishment, results and rewards Needles s to say that the satisfaction at work, the motivation and the commitment have to be protected to shape the ideal organizational culture in a healthy manner.

Finally, just to indicate, that organizational effectiveness is simply the harmonic relationship between focus, alignment and results in all the functions which leads the organization to work successfully as a whole bringing the organization close to its vision.