Organisational Effectiveness

Organisational effectiveness is important to the success of any business, whether it is product or service oriented. The key to organizational effectiveness, however, is something we refer to as self awareness.

This self awareness needs to come from the top of the organisation and flow down. If the top executives and CEO’s aren’t aware of how things are run they won’t be able to made educated decisions. Each and every decision those key executives make will have an impact on whether or not productivity increases or decreases, how quickly other members of the organisation are able to make decisions within their own departments, and the amount of conflict there is within the organisation itself.

Organisational effectiveness also refers to how successful a company is at serving the needs of its clients. A company that can’t effectively keep up with changing market trends obviously won’t be as effective as their fiercer competitors. Organisations must be able to not only spot upcoming trends, but also identify how long those trends are going to last so that they can make changes before experiencing losses. A great example of this is the dot-com boom in the early 1990’s, after which hundreds of people lost millions of dollars because they weren’t prepared for the change.

In order to remain effective an organisation must have a clear sense of direction as well as remain open to new ideas. Being able to look at today’s trends and foresee how they will impact the future will enable you to create a plan for a successful future.

How does organizational effectiveness impact your job today? Are the CEO’s above you in touch with the rest of the business? Are you effectively communicating with your clients in order to understand their needs? Sounds off in the comments!

Thanks again,


Sean McPheat

Managing Director

MTD Training   

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Updated on: 8 January, 2009

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