Because the growth potential and risk factors associated with your company are two key measures investors use to predict their profitability (and yours), the successful growth of your organization will absolutely hinge on your company’s organizational effectiveness – your company’s top-down ability to consistently achieve organizational goals!

It’s critical to always be assessing, developing, and measuring your organization’s effectiveness at achieving organizational goals in five core areas:

1. Management
2. Marketing
3. Sales
4. ‘Customer’ Experience
5. Executive Leadership

Part 1 of this article focuses on managerial effectiveness.

Demonstrate Organizational Effectiveness with your Management Team!

Although important, go beyond the track records and professional experiences of your management team and closely examine their managerial talent: their proven ability to increase the amount of profitable behaviors in your company.   Right now, can you make a list of all the profitable behaviors that take place in your company?

If you are a manager, ask yourself these additional questions:

• How am I effective at increasing the amount of results-driven behavior within my company, team or department?
• How have I been able to achieve and show measurable results that directly impact the strategic direction of my organization?
• What is the strategic direction of my company?
• When have I provided clear, strategic direction for my department?

One of the biggest challenges your management team will face is creating an environment where people are excited to perform for the results of the organization!  Managerial talent is proven through effectively…

• Leading in response to a variety of situations
• Setting goals to establish direction, define actions, and measure results
• Turning solutions into goals, and goals into actions
• Achieving Production, People, and Time Management Goals
• Planning with a clear and communicated purpose
• Making decisions employees can become committed to achieving
• Getting desired results from people
• Communicating in a way that cultivates knowledge and acceptance
• Dealing with negative behavior vs ignoring it or upholding its root cause

So how does your management team rate in managerial talent and effectiveness?

If there’s room for improvement, consider adding these concepts to your annual or quarterly performance appraisals, OR ask your management team to rate themselves in each of the above competencies prior to their reviews.  Follow-through with setting goals to improve and develop your team.

Sound like a lot of work?  It is!  That’s why the best companies are the best.  They’ve earned it.  Again…we have choices!

Only talented managers can create a profitable environment that demonstrates organizational effectiveness, and thus presents less risk to investors!

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