Organizational Effectiveness

Organizational effectiveness in simple words is the efficiency with which an organization is able to meet the objectives. This is important in order to achieve the set goals of the company. With organizational effectiveness, one can monitor how effectively an organization achieved its set quota of results, and how much waste is produced overall.

Generally, the organizational effectiveness for any company is expressed in terms of how well is the net profitability as compared to the target profitability. Some additional details also include the growth data and the results of customer satisfaction surveys.

These are a few of the steps for organizational effectiveness and efficiency-


It is the role of the leaders to define and refine the key processes, and also implement them with daily discipline, in order to achieve higher performances. A leader must be able to translate his goals and visions into strategies and objectives. Leaders are meant to address three important questions regarding-
Vision and Value
Strategy and Approach
Structure and Alignment


Communication is the key in any organization. Everything happens because there is a conversation. Good communication ensures the impact of your message, how consistent you are with your intentions. The performance culture is mostly dependent on what you say, the way you say it, and what are the circumstances under which you said it. Leaders must maximize their daily contributions to conversations. This ensures that the people are aligned around a common cause, they are focused and reduce the uncertainty.


The real job of the leaders is to translate vision and mission or the strategic direction to objectives, actions and accountabilities. To achieve accountability, sustainability, predictability, learning and renewal, leaders must bring discipline in their leadership process.


Delivery is an important aspect of organizational effectiveness. Your products and services will only be successful if they are delivered to your customers. If your organization has long and complex processes, it will encounter errors and the efficiency will be at risk. So for the success of your organization, you need to make sure that your processes are focused on priority work, and that you are using much more effective techniques. This in turn will help you to boost the performances of your organization and you can also focus on improving operations for it.


As a leader, it is your duty to hire the right people for the right jobs. Only then it will show in the performance of the team and ultimately the organization. There is no one size that fits all and not everyone is made to fit in the same. In the ‘Performance’ step of organizational effectiveness, it is the responsibility of the leader to hire, train and retain the perfect applicants.


The application of these business processes is only useful when you can measure the success it brings.

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