ORGANIZATIONAL

EFFECTIVENESSBY, MYLA MERCER

IS YOUR ORGANIZATION EFFECTIVE?

Organizations have less than a second to make a first impression. Communication, Process, and Consumer Engagement are highly sought after skills in organizational effectiveness.

WHAT IS ORGANIZATIONAL EFFECTIVENESS?

ORGANIZATIONAL EFFECTIVENESS IS THE PROCESS IN WHICH AN ORGANIZATION IS EFFECTIVE IN THEIR MISSION OR GOAL. VARIOUS STRATEGIES CAN BE USED TO EVALUATE A PARTICULAR ORGANIZATION’S EFFECTIVENESS, SUCH AS HOW LONG THE ORGANIZATION HAS SUSTAINED OR HOW SATISFIED THE EMPLOYEES ARE OVERALL. MOST SUCCESSFUL ORGANIZATIONS HAVE SUSTAINED LONG-TERM DUE TO THEIR ABILITY TO ADAPT TO THE CHANGING MARKETPLACE AND TECHNOLOGICAL ADVANCES.

COST LEADERSHIP STRATEGY

COST LEADERSHIP IS A STRATEGY THAT MANY COMPANIES USE TO UNDERCUT THEIR COMPETITION. THE IDEA OF THIS STRATEGY IS TO OFFER THE PRODUCT AT A LOWER COST THAN THEIR COMPETITORS, HENCE GAINING THE CLIENTELE. A GOOD EXAMPLE WOULD BE A COMPANY THAT USES AN OVERSEAS CALL CENTER. BECAUSE THE EMPLOYEES ARE PAID LESS OVERSEAS, THE COMPANY COULD MAKE A LARGER PROFIT. HOWEVER, IT COULD BE AT THE EXPENSE OF THEIR CURRENT CLIENT BASE DUE TO LANGUAGE BARRIERS AND OTHER NUANCES.

DIFFERENTIATION

THIS IS A TECHNIQUE THAT COMPANIES USE WHEN THEY HAVE A PRODUCT THAT IS UNIQUE FROM THEIR COMPETITION. FOR EXAMPLE APPLE PRODUCTS SUCH AS THE IPHONE OR MAC COMPUTERS. THESE PRODUCTS ARE UNIQUE, PROPRIETARY, AND DESIGNED IN A WAY THAT HAS ALLOWED DOMINANCE IN THE MARKETPLACE.

WHAT MAKES SOME ORGANIZATIONAL ENVIRONMENTS MORE UNCERTAIN THAN OTHERS?

• COMPETITION- IF A COMPANY HAS PRODUCED AN EASILY DUPLICATED PRODUCT, THEN IT IS NOT PROPRIETARY AND RISKS LOSING CLIENTELE TO COMPETITION.

• ECONOMY- THE ECONOMIC UPTURN OR DOWNTURN CAN EFFECT BUSINESSES IN A MULTITUDE OF WAYS, SOME HARDER THAN OTHERS.

• LACK OF ADVANCEMENT- TO OUTLAST COMPETITION, A COMPANY MUST STAY RELEVANT IN THE MARKETPLACE. EXTINCTION CAN HAPPEN IN ANY MARKET AT ANY TIME IF A COMPANY DOES NOT CONTINUE TO GROW, ADVANCE, AND CHANGE WITH THE TIMES.

STRATEGIC COMPETITIVE EXAMPLETWO CONTRASTING BUSINESSES: REVLON VS. EMINENCE. REVLON IS A MAKE-UP COMPANY THAT HAS A LOT OF

COMPETITION SUCH AS L’ORÉAL, MAYBELLINE, NEUTROGENA, ETC. EMINENCE IS A NICHE COMPANY PROVIDING ORGANIC

SKINCARE THAT DOES NOT HAVE A LOT OF COMPETITION. REVLON PRODUCES PRODUCTS FOR A LOWER

DEMOGRAPHIC/MASS POPULATION. EMINENCE PRODUCES PRODUCTS FOR A SMALLER MARKET, BUT AT A MUCH HIGHER

PRICE POINT. REVLON COULD REDUCE SOME OF ITS UNCERTAINTY BY COMING OUT WITH NEW PRODUCTS BEFORE ITS

COMPETITORS. IT COULD ALSO COME OUT WITH A NEW BRAND THAT TARGETS THE NICHE MARKET OF ORGANIC

SKINCARE/MAKE-UP.

CAN YOU LEVERAGE YOUR COMPANY’S EFFECTIVENESS AROUND CLIENT PERCEPTION? YES!

• THE THEORY THAT EMOTIONS ARE A RESULT OF PAST EXPERIENCE HAS BEEN IN DEBATE SINCE PROGRESSIVE CIVILIZATION BEGAN, PARTICULARLY WITH THE AGE OF PSYCHOANALYSIS. SOMEONE’S PERCEPTION CAN ABSOLUTELY CHANGE IF THE THOUGHT BEHIND THE EMOTION WERE CHANGED.

• EVOKE POSITIVE FEELINGS WITH YOUR BRAND, AND CLIENT PERCEPTION WILL CHANGE TO POSITIVE.

FINAL THOUGHT: ORGANIZE FOR EFFECTWithout organization, the effectiveness of an organization will eventually bottom-out. For maximum effect, the backbone of any organization should rely heavily on communication, processes, and consumer engagement.