Effectiveness is a multi-layered and subjective concept. It entails a lot more than financial indicators and needs to be thoroughly examined since every company’s situation is unique. There is no other person better suited than a company’s leader to determine what, how and how often should be measured to obtain the result that best describes company performance and objectively points out the strengths as well as the weaknesses to be eliminated. For a comprehensive evaluation of a company’s effectiveness, I recommend to include and carefully consider all of the 10 factors discussed below.
Strategy |
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Business strategy generally serves as a good foundation for a successful operation of a company. However, every leader should critically assess if employees below the management level have an equally clear understanding of the strategy and also feel engaged and equally responsible for its realization. Any strategy and long term goals will deliver a much better result if those are communicated across the entire company and both the management as well employees themselves are able to track progress daily. Strategy may not be polished to perfection, but with outstanding performance management it will definitely yield the desired results! |
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Management |
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Employees |
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Internal company standards |
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Change management |
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Customers |
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Suppliers |
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Internal communication |
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Information systems |
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Quality |
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