Organizational Effectiveness Helps Business
Alan Guinn
January 11, 2008
Business owners worldwide consistently seek ways to improve effectiveness while minimizing costs and creating additional profits. There's more to the process of improvement of organizational effectiveness than simply minimizing costs.
Many business owners believe that reduced costs from vendors or suppliers of goods and services hold the ultimate key to successful improvements in the bottom line. Too often, however, the issue is not with costs of raw goods or services used, but with the level of productivity within their own organization.
Business owners would do well to take heed from a current example very prevalent in the media.
Take the ongoing creative writer's strike in California as a case in point...or as comic Henny Youngman used to joke about his Mother-in-Law, "Take her, please." New television shows have been reported to be delayed, and many favorite shows are being denied production because the writers are seeking...what, exactly? The case supporting their side has simply not been made.
The omnipresent media coverage has presented the writers as seeking additional revenue for work produced. Fair enough. Translation: They want more money.
Everyone wants more money. A show of hands for all readers who don't want more money for what is done in life. Where are all the hands? This frames an excellent allegory for studying how to make business work, and how to make business stop working.
One key question to organizational effectiveness is this: What is it that the writers are offering to do in return if they are awarded more money for their efforts? Additional production? Haven't seen it mentioned. Additional scripts for shows beyond work currently in process? Isn't in the cards. Haven't heard it mentioned.
The assessment of this must be that the writers in California are simply going to delay production until they get more money. One side or the other, as in most cases like this, will generally blink---but not until both sides lose mega dollars in revenue.
Where is the development of process to address the organizational effectiveness? It's simply nowhere to be found.
Let's relate that to small business opportunity.
A small factory can produce a large number of widgets at a very reasonable cost, but the employees decide they want more money than they are being paid. The employees collectively decide to not show up for work one day, and the owner of the business has contracted for a large number of widgets to be delivered--- but has no ability to produce them because the employees didn't show up to build them.
A critical part of Organizational Effectiveness can be found in keeping lines of communication open to all parties impacted by the decision-making; and moreover, understanding the needs of all parties within an organization.
How can the organizational effectiveness of a small business be improved?
First, communicate with the employees. Learn what issues concern them and learn how to address those needs. The business owner has the best overall picture of what can be done, at what cost and in what way, to best address the needs of everyone.
Second, be open with employees. Don't hide the success and share only the negatives. Share the good parts of business success as well as the challenges faced in running the business. Employees respect an owner who is open and honest with them.
Third, if there's not a full understanding by all parties of why a part of the business isn't working the way it should be working, don't be afraid to ask for help. Too often, pride on one side of an issue will keep a resolution at bay.
Finally, decide once and for all that the business will grow and prosper, and all parties will participate in the success of the business.
Make 2008 a banner year for your business, and a year of record revenues and profits.
Many business owners believe that reduced costs from vendors or suppliers of goods and services hold the ultimate key to successful improvements in the bottom line. Too often, however, the issue is not with costs of raw goods or services used, but with the level of productivity within their own organization.
Business owners would do well to take heed from a current example very prevalent in the media.
Take the ongoing creative writer's strike in California as a case in point...or as comic Henny Youngman used to joke about his Mother-in-Law, "Take her, please." New television shows have been reported to be delayed, and many favorite shows are being denied production because the writers are seeking...what, exactly? The case supporting their side has simply not been made.
The omnipresent media coverage has presented the writers as seeking additional revenue for work produced. Fair enough. Translation: They want more money.
Everyone wants more money. A show of hands for all readers who don't want more money for what is done in life. Where are all the hands? This frames an excellent allegory for studying how to make business work, and how to make business stop working.
One key question to organizational effectiveness is this: What is it that the writers are offering to do in return if they are awarded more money for their efforts? Additional production? Haven't seen it mentioned. Additional scripts for shows beyond work currently in process? Isn't in the cards. Haven't heard it mentioned.
The assessment of this must be that the writers in California are simply going to delay production until they get more money. One side or the other, as in most cases like this, will generally blink---but not until both sides lose mega dollars in revenue.
Where is the development of process to address the organizational effectiveness? It's simply nowhere to be found.
Let's relate that to small business opportunity.
A small factory can produce a large number of widgets at a very reasonable cost, but the employees decide they want more money than they are being paid. The employees collectively decide to not show up for work one day, and the owner of the business has contracted for a large number of widgets to be delivered--- but has no ability to produce them because the employees didn't show up to build them.
A critical part of Organizational Effectiveness can be found in keeping lines of communication open to all parties impacted by the decision-making; and moreover, understanding the needs of all parties within an organization.
How can the organizational effectiveness of a small business be improved?
First, communicate with the employees. Learn what issues concern them and learn how to address those needs. The business owner has the best overall picture of what can be done, at what cost and in what way, to best address the needs of everyone.
Second, be open with employees. Don't hide the success and share only the negatives. Share the good parts of business success as well as the challenges faced in running the business. Employees respect an owner who is open and honest with them.
Third, if there's not a full understanding by all parties of why a part of the business isn't working the way it should be working, don't be afraid to ask for help. Too often, pride on one side of an issue will keep a resolution at bay.
Finally, decide once and for all that the business will grow and prosper, and all parties will participate in the success of the business.
Make 2008 a banner year for your business, and a year of record revenues and profits.