What Is Organizational Effectiveness?
The Organization Development Network defines Organizational Effectiveness as how effective an organization is in meeting its intended outcomes. While the OD Network was founded in 1968 as a way for leaders in the field of organization development to connect and advance, there’s not a specific organizational effectiveness industry-governing body like the Project Management Institute or the Change Management Institute. There’s no ISO certified nonprofit body or arm that focuses solely on this field of study.
Organizational Development is a combination of things. In fact, according to the Global OD Competency Framework, there are five different capability areas of OD Competency. [Learn more about this framework HERE.] Within each of these capability areas are different skills, including project management, data analysis, leadership, and change management.
As such, Organizational Effectiveness, employs these same capabilities and skills to help organizations utilize their resources the best they can to achieve success.
Organizational (adj.) – relating to an organization
Effectiveness (noun) – the degree to which something is successful in producing a desired result
Implementing Lean Project Management
The key here is the “desired result.” If the desired result is to reduce the amount of waste within the organization, that might mean implementing Lean Project Management. If it is helping people be more effective in how they get stuff done, that might mean using project management best practices. And if an organization needs to help move their people through a change, then they will need to turn to Organizational Change Management.
The “Triangle” of Organizational Effectiveness
In my mind, these are the three arms that make up the “Triangle” of Organizational Effectiveness – Lean Thinking, Change Management, and Project Management. To make it the “Golden Triangle” of Organizational Effectiveness, we outfit the whole thing with our most precious resource – people. How do we, as humans, operate? What do we know about how we operate? We overlay that knowledge on top of the three other areas of focus and that is the entire essence of OE.
How to Determine Desired Organizational Effectiveness Results
Now that we have a clearer picture on what Organizational Effectiveness means, you might be asking – That’s great, but how do organizations determine what their desired results should even be?
This starts with organizations getting super clear on who they’re trying to be, what they’re trying to do, and what that should like. And from there, disseminating that information to their people so that they understand they’re there to help move the vision forward. Then, it’s empowering those people to get stuff done creatively, efficiently, and safely.
So, determining desired results means starting with a vision and working your way out to strategy, cultural alignment, communication, and decision-making. Then, how are you executing those decisions? How are you supporting your people? Do you have the best and most effective tools?
This layered approach to the overall effectiveness of an organization is why we, at Nimble Up, focus not just on project management but also on visioning, change management, meeting effectiveness, and more. Organizational Effectiveness is ALL those things.
It is why I, as the lead educator, create curriculum that always has the “Golden Triangle” in mind. Helping organizations function in ways that put people first and let them shine is important to me. I believe that starts with a solid foundation in lean thinking, change management, and project management.