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What is Organizational Effectiveness?

Organizational Effectiveness

When you think ‘Six Sigma’, the first thing that usually comes to mind is ‘improvement’. And, rightfully so. Six Sigma methodology focuses on deterring errors in a process by increasing efficiency and striving for constant improvement. However, Six Sigma is closely related to what is known as Organizational Effectiveness. This term refers to the overall effectiveness of an organization and how well it performs under management. In this article, we will discuss this term in more detail and outline its six distinct steps.

What is Organizational Effectiveness?

By definition, organization effectiveness is the efficiency of an organization, group, or company can meet its goals. How an organization produces its set quota of products, how much waste it produces, or how efficient its processes fall under organizational effectiveness. Since Six Sigma is a methodology that focuses on improving the overall efficiency of a business process, it’s easy to see how the two terms are related. While Six Sigma follows a set of methods, such as Lean and DMAIC, organizational effectiveness has its own six-step process.

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The Six Steps of Organization Effectiveness

  1. Leadership

The first step in organization effectiveness is ‘Leadership’. In this step, management and project leaders set forth the overall vision of the organization. What goals they hope to accomplish with this project, how to carry them out, and what results they must strive for are in Leadership.

  1. Communication

Of course, Leadership is only as effective as the group’s overall communication. In the second step, Communication focuses on evenly spreading the goals, guidelines, and aspirations that derive in Leadership. Furthermore, project managers must focus on strategic communication, relation information in the forms that other project members need to complete their tasks.

  1. Accountability

In the third step, Accountability, project managers and leaders must uphold other employees to their tasks and responsibilities. Typically, project team members receive awards or consequences, based on their performance. As a result, Accountability greatly determines how smoothly and effectively a project performs.

  1. Delivery

Your products and services are only successful if customers can receive them. At the next step, Delivery focuses on ensuring an effective delivery system is in place. When your organization has long, complex delivery process, errors will occur and efficiency is at risk. With smaller, more concise processes, your end products can be delivered on time to the right people.

  1. Performance

As a project manager, you must hire the right people for the correct jobs. Of course, not everyone fits in the same position. At the ‘Performance’ step, the goal is to hire, train, and retain the perfect applicants for the processes and tasks you have.

  1. Measurement

A business process is only effective if you can measure it. At the final stage of organizational effectiveness, you must measure and analyze your project, process, or other systems. Likewise, you must measure your organization with the correct metrics. Failing to do so will result in accurate or non-usable data.

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