The Importance of Organizational Effectiveness

Dwight Mihalicz,

Organizational effectiveness is far more than the ability of your company to make sales or to turn a profit. Rather, it focuses on the overall effectiveness in these short-term areas, as well as sustainability, concern for the environment, corporate culture, talent management, leadership, innovation, strategy, engagement, and communication. Organizational effectiveness requires that we take a more holistic view. “Effectiveness” means different things to different organizations, but we can agree that it means survival and a competitive edge in the 21st Century.

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On one side of the equation, we have your organization’s business model and strategy; on the other, we have its outputs. How can you translate your strategy into outputs effectively? At the crux of this question is the role of the manager. It is through its managerial systems that a company creates outputs. Getting these systems right is critical to ensuring that the organization is working in a consistent way, and that everyone is pulling together to accomplish the strategic goals of the organization. Three factors have considerable influence over effectiveness in this regard:

  • The CEO. Like an architect, the CEO has to make sure that there are strong systems in place to support the work of the organization and that those systems can work in concert towards achieving his/her goals.
  • The Manager-Subordinate Manager Relationship. The manager is a conduit between the executives and the subordinate managers. His/her job is to translate the goals from the CEO to the managers and delegate responsibilities accordingly. Done effectively, this ensures a smooth line of communication and clarity between goals and activities. Done ineffectively, this creates a wide gap that threatens the outputs.
  • The Manager. The manager is responsible for the completion of tasks that will accomplish the goals. Some of this work is individual output, but the major part of the work is figuring out how best to delegate work andto  manage your people as they do their part of the work. The manager’s capability, competence, motivation, and ability to engage his or her team are crucial.
An organization is like a human being: the brain sends communications along the spinal cord, which passes along the messages to the hands and feet. In a healthy, efficient body, this works seamlessly. In a healthy, efficient organization, the CEO, managers, and subordinate managers contribute to the success, sustainability, and effectiveness of the whole by working together in a cohesive way.

Dwight Mihalicz

Dwight Mihalicz has over 40 years’ experience helping local, national, and international organizations achieve greater productivity, efficiency, and performance.
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