The traits of effective organisations

Top performing organisations have many qualities in common (as do under-performing organisations.) Here are 17 of them.

1. Everyone has a good idea of the decisions and actions for which they are responsible.

2. Important information about competitors and the marketplace is shared quickly.

3. Once decisions are made they are rarely second guessed.

4. Information flows freely across organisational boundaries and departments.

5. All staff have the information they need to understand the bottom line impact of their day to day choices.

6. Line managers have access to the metrics they need to measure the key drivers of their business.

7. Managers up the line get involved in operating decisions

8. Conflicting messages are rarely sent into the market place

9. The individual performance appraisal process differentiates between high, adequate and low performers

10. The ability to deliver on performance commitments strongly influences career advancement and compensation

11. It is more accurate to describe the culture as ‘persuade and cajole’ rather then ‘command and control.’

12. The primary role of head office is to support business units rather than audit them.

13. Promotions can be lateral moves

14. Fast track employees can expect promotions more frequently than every 3 years

15. On average middle managers have 5 or more direct reports

16. If the firm has a bad year, but a particular division performs well, the division would still get a bonus.

17. Besides pay, many other things motivate individuals to do a good job

Source: Research carried out by Gary Nielson, Karla Martin & Elizabeth Powers (26,000 people in 31 organisations.) As reported in the Harvard Business Review June 08

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