Thursday, August 8, 2013

Organizational Efficacy: Analyzing Organizational Level Capability


Organizations are complex entities with manifold influences impacting their output.  Methodologies exist to analyze organizations from limited viewpoints such as employee engagement, but, in the end, it is the organizational level, not the individual level, that predicts success.  A few star employees cannot provide the necessary organizational power to overcome massive challenges or to produce overall organizational output.  It is the organizational level that matters.

When someone assesses their confidence (efficacy) to do something, they cognitively weigh many things.  They are considering their experience, their skillset, their education, their surroundings, support, decision-making capabilities, and ultimately evaluate all those elements to answer the question “Can I do this?”  It is a moment of ‘yes, I can’ or ‘no, I cannot’.  In the end, it is one’s overall level of confidence (efficacy) that determines the things people choose to do, and how much effort they will put into the work.
What if we could do that with organizations?  What if we could assess, at a very high level, the sense of whether an organization has the power to achieve its strategies?  We can. 

Organizational Efficacy is a research derived social-psychological metric that includes the collective viewpoints of people within an organization to assess whether that organization can succeed.  It is a measure of “can do”.  It evaluates (1) whether people know where the organization is going, (2) whether they can work together to accomplish their organizational goals, and (3) whether they will persist in achieving organizational goals when things go wrong.

By assessing at an organizational level, Organizational Efficacy takes into account organizational influences ranging from vision statements to hiring practices to reward systems to product innovation, leadership capabilities and everything in between.  It is an inclusive metric designed to evaluate overall organizational ability to produce an outcome.
An analysis of Organizational Efficacy gives Senior Executives and Human Resource teams the data to:

Find the “Weakest Link.” Analyzing the Level of Organizational Efficacy at the departmental level to help you strengthen your weakest link.  By doing so, you enhance the performance of the entire organization.

Assess reasons for poor performance. Organizational Efficacy tools assess where to focus budget, managerial effort, and training to improve performance.
Plan for success.  The Organizational Efficacy diagnostic tool assesses how teams and organizations will manage new challenges, especially during times of major organizational change. Deficits can be addressed to ensure the team has a greater likelihood of success.

Analyze exemplar teams to assess why they have such a strong level of efficacy, and leverage that knowledge to improve your entire organization!

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