Wednesday, December 13, 2017

OPERATIONAL EFFECTIVENESS – THE HEART OF PERFORMANCE EXCELLENCE

March 1, 2010 by  
Filed under Industry News

Operational effectiveness is an organization’s ability to deliver optimal results in a timely manner. It’s about doing everything you know to do and doing it well. Simple enough, right? If it’s so simple, then why does this organizational dynamic haunt management?

The fundamentals of management – planning, organizing, leading, directing, and controlling – have not changed. They are still as important as ever and yet executing them well remains challenging.

Operational effectiveness is about continuously improving functional performance. To do this, managers must effectively lead and control the activities within the organization, measure and improve the processes that they are responsible for. They must be able to build and align the capabilities, processes and talent needed to more effectively implement the strategic plan.

Some components of organizational effectiveness include:

  • Good management
  • Effectual business model
  • Strong culture, mission and vision
  • Strategy linked to organizational goals
  • Ability to translate strategy into action
  • Clear practices, policies  and procedures
  • Talented team members with a passion for their work and a level of satisfaction that leads to low turnover
  • Supportive environment accepting of change and innovation
  • Emphasis on planning, training, and support
  • Good interdepartmental communication
  • Adaptive organizational structure capable of implementing performance/process improvement
  • Well-designed monitor/measurement systems
  • Consistency and congruency between words and actions

We make effectiveness judgments regularly. Whether it’s the speed of service, friendliness of employees, cleanliness of the facility, good value for the money, quality of the merchandise, performance of an individual or of an item, or other measures – we judge effectiveness.

We make value judgments on everything from the food we buy, the clothes we wear, to the service that we receive. Your customers also know effectiveness when they see it and more often, when they don’t.

Organizations must be performance-driven possessing the operational capability needed to support and realize the overall business strategy. The best organizations are the ones that make the fewest mistakes. They are the ones that do not stray from their core principles.

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