The Triad of Organizational Effectiveness (Part 1)

  Governance  

The ultimate goal of any organization is to improve its effectiveness. Effectiveness means doing the right things, while efficiency means doing things right. While an old cliché, it is still worth reviewing. For example, effectiveness translates into increased revenue, decreased costs and continuous improvement. Efficiency means producing a good widget, buggy whip or next generation technology. Effectiveness provides direction, efficiency does not.

To put it another way, to improve an organization's effectiveness, ultimately everyone in that organization has to tie their role, either directly or indirectly, to increasing revenue or driving down costs. However, if you asked most folks in your organization how their role contributes to increasing revenue or decreasing costs, most will give you a "deer in the headlights" look. This is not their fault. It is simply a lack of understanding.

While there are hundreds, possibly thousands of models to improve organizational effectiveness, most models do not speak very well to all stakeholders. They are either too complicated or too comprehensive to operationalize throughout the enterprise. The executive staff typically gets a debrief on the model and it rarely translates down to the process level, which are the gears of any organization.

To improve the effectiveness in any organization …

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