The purpose of every organization is to be effective within its environment. That is the underlying principle of a new theory of organizational effectiveness, called the outcome-focused model (OFM). In the new theory, an effective organization serves its environment and is rewarded in return (through benefit exchanges).

Effectiveness is about converting an organization’s supply-side intentions (to serve its environment through its offerings) into demand-side behaviors (uptake, adoption, or use of those offerings). Because the demand-side behaviors of uptake, adoption, and use are visible (and measurable), managers can actually verify and monitor indicators of effectiveness in real time. In the past, organizational effectiveness has been called an enigma and a wicked problem. The new concept of organizational effectiveness is as applicable to police departments as it is to fast food restaurants, thus providing a unifying principle for management thought in business, government and nonprofit sectors alike. In fact, effectiveness confers all that an organization needs to survive and thrive.

Looking for a new way to give your organization a sense of purpose? You don’t have to look far, just take a look at your environment and re-imagine how you can serve it. Not only is it a way to achieve your purpose, it is a way to do well by doing good. Serve your environment & be rewarded in return.

Charles G. Chandler, Ph.D.
[email protected]

Reference:
Chandler, Charles G. 2015. “Organizational Effectiveness: Replacing a Vague Construct with a Defined Concept”. Academy of Management Proceedings. 2015: 11023.