Organization Performance

Customer
Loyalty

Customer Loyalty Model

Multi-Rater
Assessment

PDi Followup
Action Planning

Transformational Leadership - Leaders, particularly immediate supervisors, are critical drivers for individual and team performance. Leaders set the stage when it comes to actually implementing strategic plans, change initiatives, and other programs and policies. They provide the feedback employees need to figure out which plans, initiatives and programs should be taken seriously, and which are lip service - just for show. Their example shows employees what kind of behavior gets people ahead. They determine the degree to which their subordinates will be informed and involved. Their vision and influence determine the relationship of their functional unit with the larger organization. Their performance is the foundation on which organizational effectiveness is built.

Enabling Structure - Organization structure is the great mediator of leadership. When an immediate supervisor is an excellent leader, poor organization structures can undermine the beneficial effects by frustrating employees with bureaucracy, inadequate information, and poor work environments. Similarly, when leadership skills are lacking, enabling structures can offset much of the damage by fostering such things as open communication and decentralization of authority. Ideally, enabling structures will magnify the positive effects of good leaders. Similarly, dysfunctional structures will magnify the destructive effects of poor leaders.

Teamwork - Since most organizational output is team based, teamwork is ground zero for organizational effectiveness. Teams characterized by accountability, cooperation, communication and respect tend to be more effective than teams which are not.

Discretionary Effort:- Effectiveness demands more than just basic motivation to contribute the minimum effort necessary to complete a job. Effectiveness requires skilled employees who take initiative to handle things as they come up, and who maintain the life-work balance necessary to sustain their effort over time, without burning out in the process.

Alignment - Receiving good ratings on most of the laundry list of important issues presented above is not enough. Alignment assesses whether these strengths are working together, or pulling the organization apart. A classic alignment problem involves leaders whose strategic plan calls for one set of behaviors (such as quality), while their compensation system rewards another (such as quantity or speed). When all parts of an organization work together with common purpose, mutual support, and balance, effectiveness is maximized.

Value Outcomes - Effective performance should result in measurable outcomes which enhance the value of organizational products and services. Significant variation among the value outcomes usually indicates alignment problems.

Stakeholder Satisfaction - Organizations who meet industry expectations are giving stakeholders (customers, employees, investors) the value they expect. These expectations represent a sort of industry average performance - a basic level of stakeholder satisfaction.

Stakeholder Loyalty - Organizational outcomes such as stakeholder retention, strong growth, and a superior reputation require more than a favorable comparison to competitors, they require excellence. Loyalty is built through superior performance and fair treatment. In the long term, firms who treat all stakeholders in a balanced and fair manner consistently outperform those who focus on one stakeholder group at the expense of the others. Organizations who adopt this strategy often acknowledge it as a source sustainable competitive advantage.