Organizational Effectiveness
What makes organizations effective? For that matter, what do we even mean by effectiveness? I've been giving these questions some thought recently and the following graphs are the result. (Here's the whole 9-slide PowerPoint file, 75 KB.)

I love the Peters/Waterman/McKinsey "7s" Model, but we can extend it in two directions. First, looking within an organization, if we reduce the model further and boil it down to its most essential core elements, I think we're left with People (or Staff, in 7s-speak) and Culture (an amalgam of Style, Skills and Shared Values.) Second, if we look beyond the organization--if we ask why it exists and whether its fulfilling its purpose--we begin to assess its Impact, which includes not only profitability and financial sustainability but also the value created for any stakeholders, from a business's employees to a nonprofit's clients.

My focus on these three elements is also due to their tightly interrelated nature--they all affect the other two in fundamental ways.

I think one of the least-understood dynamics is the relationship that exists between an organization's people and its culture. Sometimes it's difficult to even know where to draw a boundary between the two: Where do I stop and where do my contributions to the culture around me begin? This may be why so many organizations operate without a clear understanding of their culture. (And to be clear, every organization has a culture: "When you've decided you don't have a culture, you've got one...")
But what's most important to recognize is the dialectical nature of this relationship. An organization's founders create the initial culture, which then exerts its influence on them in turn. Future colleagues are attracted to the pre-existing culture because in some way it meets their needs, and so they reinforce it.

I've also focused on People and Culture because I see these elements as most closely connected to an organization's Impact. This isn't to say that other elements don't matter--but ultimately people implement an organization's plans, and the culture in which they operate helps them or hinders them. Talented people can overcome misguided strategies and suboptimal systems, but they can't outrun a dysfunctional culture (not for long, anyway.)

And an organization's Impact--its ability to achieve its goals, fulfill its purpose and create value for stakeholders--directly affects its ability to attract and retain effective people and to build and sustain a high-performance culture.

OK, having mapped out the relationships that exist among these three elements, what do they actually look like? How do we define People, Culture and Impact in effective organizations?

Here's my definition of effectiveness as it pertains to People. I emphasize connections with Culture and Impact; interpersonal skills and accountability; self-development and growth.

Here's my definition of an effective Culture. I emphasize distributed leadership, continuous learning, openness, and decentralization. The final quote from Tom Peters deserves further explanation: The 7s Model is sometimes divided into "Hard" elements (Strategy, Structure and Systems) and "Soft" elements (Skills, Staff, Style and Shared Values). Our business culture tends to value the former and dismiss the latter, and Peters thinks this is entirely ass-backwards. The "hard" stuff, from strategic plans to complex financial structures, is actually pretty fuzzy and surprisingly easy to fake. The "soft" stuff--relationships, leadership, interpersonal skills (in short, culture)--is actually pretty resilient and surprisingly difficult to get right. Hard is soft, soft is hard.

I don't believe there's a universal definition of Impact--organizations define value-creation in different ways, and they're answerable to different sets of stakeholders. But I do believe that effective organizations share the characteristics listed above, which enable them to understand, measure and communicate their impact, and to use that information to drive decision-making (cf. Bob Sutton and Jeff Pfeffer's Hard Facts.) At the same time, they reality-check regularly and don't let data dictate decisions.
Effective organizations also know when to give up and move on. They take a pragmatic approach and never let sunk costs fuel persistence--instead, they've mastered the art of strategic quitting.
Finally, effective organizations have a vision of victory that they're driving toward. What would it look like to win? For some organizations (including many nonprofits), ultimate victory means putting themselves out of business because they've succeeded in fully and permanently meeting the need that they were created to fulfill.
Again, if you're interested, here's the whole 9-slide PowerPoint file (75 KB). As with the other models I post here, I consider this a work-in-progress that helps me make sense of the world, and I welcome any feedback to improve it or make it clearer.


I've been able to spend a little time recently digging into some social media tools to understand how they work as well as their potential value for someone like me, i.e. an executive coach and change management consultant with an abiding interest in technology. So here's a quick rundown:





Just in case you haven't noticed, I've been cleaning things up around here over the past few days. (Note to Explorer users: I know the boxes in the left-hand sidebar are running wide--I'm trying to determine the cause of the problem. Thanks for bearing with me...and have you ever considered using
I had a vivid reminder this morning that we're represented online not only by the data we can see--from blog posts to search results--but also (and increasingly) by metadata that we often can't see. (And I also learned just how good customer service can be.)
Over the the course of 2006 I've been writing fewer posts about technology (blogging and dead laptops excepted) and more about management and leadership. That's partly because I've been writing more intensively about technology on my "


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