Organisational Effectiveness: A New Measure of Success
Shareholder value has been at the centre of organisational success in our neo-liberal capital system for decades.
Profit and delivery of financial returns is what defines the western philosophy of organisational performance.
But the banking crisis, government sovereign debt and on going challenges in the markets have called into questions whether the traditional measures are adequate.
Growth hides a multitude of sins in regards to organisational measures of success.
When things are good and individuals feel secure in their jobs, they maybe do not question whether the interests of the organisation are aligned to their own interests.
But when organisations struggle, and put their interests before that of the employee, people begin to question where their own interests lie, and whether they have ever been valued by the organisation.
When events are still having the impact that they are having on organisational performance, many may question whether this is the right time to be challenging traditional measures of success, is it not just moving the goal post to make organisations look better? But the social impact of the banking crisis is tremendous.
It is affecting employee well being, national productivity and possibly creating a whole generation of individuals who struggle to find employment.
The riots last summer were a result of the turbulent economic, political and social context in which the UK finds itself.
Organisational challenges are now social challenges.
Therefore, organisational effectiveness needs to be redefined to include not just operational effectiveness but a genuine togetherness and common interest between employees and the organisations for which they work.
Definitions of organisational effectiveness are varied, but they include elements such as ethical responsibility, fairness, sustainability and long term value creation; all of which are in contrast to the deliverables demanded by an economy which has been transitioning towards 'fast capitalism.
" Francis, Holbeche and Reddington (2012) offer a useful definition; "Organisation Effectiveness takes as its desired end point sustainable, self-renewing outcomes.
This...
requires a shift in mindset and practice with respect to organisational change, towards one based on...
authentic mutuality.
" Organisational effectiveness is therefore a goal, final objectives, which suggests that in order to get there, the organisation needs to be clear on it current position and has to develop from where it is towards where it wants to be - that is, organisational effectiveness.
Organisational effectiveness therefore is not a process to be implemented but rather it is something that the organisation seeks to achieve.
One challenges of organisational effectiveness is that it is not a final destination that once reached provides a finish line.
Organisational effectiveness can be achieved if you do the right things, right; but the organisation must continue to do the right things right in order to remain effective.
Employee engagement has been researched in great detail, but engagement is more than about impacting bottom line performance.
Organisational effectiveness seeks to engage the employee with delivering continuous improvement and self-renewal in order to deliver competitive advantage for the benefit of the both the organisation and the employee population.
Organisations need to stop spending all their time focused on spread sheets and obsessing over the numbers, and must start an open dialogue with their employees on how to build a healthy and effective business model which delivers sustainable performance through its people.
A shared purpose between employees and the organisation, coupled with a holistic organisation development approach will improve employee motivation, increase job enrichment and deliver a strong partnership approach which can provide the resources, energy and leadership which brings real meaning to the workplace.
Developing a culture based on a collective mind-set "we are in this together and will all benefit" will not only deliver results in the short term but also provide the foundation for long-term sustainable performance for both the employee and the organisation.
Profit and delivery of financial returns is what defines the western philosophy of organisational performance.
But the banking crisis, government sovereign debt and on going challenges in the markets have called into questions whether the traditional measures are adequate.
Growth hides a multitude of sins in regards to organisational measures of success.
When things are good and individuals feel secure in their jobs, they maybe do not question whether the interests of the organisation are aligned to their own interests.
But when organisations struggle, and put their interests before that of the employee, people begin to question where their own interests lie, and whether they have ever been valued by the organisation.
When events are still having the impact that they are having on organisational performance, many may question whether this is the right time to be challenging traditional measures of success, is it not just moving the goal post to make organisations look better? But the social impact of the banking crisis is tremendous.
It is affecting employee well being, national productivity and possibly creating a whole generation of individuals who struggle to find employment.
The riots last summer were a result of the turbulent economic, political and social context in which the UK finds itself.
Organisational challenges are now social challenges.
Therefore, organisational effectiveness needs to be redefined to include not just operational effectiveness but a genuine togetherness and common interest between employees and the organisations for which they work.
Definitions of organisational effectiveness are varied, but they include elements such as ethical responsibility, fairness, sustainability and long term value creation; all of which are in contrast to the deliverables demanded by an economy which has been transitioning towards 'fast capitalism.
" Francis, Holbeche and Reddington (2012) offer a useful definition; "Organisation Effectiveness takes as its desired end point sustainable, self-renewing outcomes.
This...
requires a shift in mindset and practice with respect to organisational change, towards one based on...
authentic mutuality.
" Organisational effectiveness is therefore a goal, final objectives, which suggests that in order to get there, the organisation needs to be clear on it current position and has to develop from where it is towards where it wants to be - that is, organisational effectiveness.
Organisational effectiveness therefore is not a process to be implemented but rather it is something that the organisation seeks to achieve.
One challenges of organisational effectiveness is that it is not a final destination that once reached provides a finish line.
Organisational effectiveness can be achieved if you do the right things, right; but the organisation must continue to do the right things right in order to remain effective.
Employee engagement has been researched in great detail, but engagement is more than about impacting bottom line performance.
Organisational effectiveness seeks to engage the employee with delivering continuous improvement and self-renewal in order to deliver competitive advantage for the benefit of the both the organisation and the employee population.
Organisations need to stop spending all their time focused on spread sheets and obsessing over the numbers, and must start an open dialogue with their employees on how to build a healthy and effective business model which delivers sustainable performance through its people.
A shared purpose between employees and the organisation, coupled with a holistic organisation development approach will improve employee motivation, increase job enrichment and deliver a strong partnership approach which can provide the resources, energy and leadership which brings real meaning to the workplace.
Developing a culture based on a collective mind-set "we are in this together and will all benefit" will not only deliver results in the short term but also provide the foundation for long-term sustainable performance for both the employee and the organisation.