Can there really be an Effective Organization by John Persico

Warren Bennis once said that a leader does the right things while a manager does things right. One could extend this to mean that you must have both efficiency and effectiveness in an organization. The real question is whether or not it is possible for an organization to be both efficient and effective. Before we can answer this question we must define just what an effective organization is. Some possibilities include:

  • Profitable
  • Meets or exceeds customer expectations
  • Fulfills its mission statement
  • Creates stakeholder value
  • Rising stock prices
  • Wins quality awards
  • Has satisfied employees and managers
  • Has been around for many years

Most executives would be more than happy to have an organization that satisfies even a few of these criteria, never mind all of them. With the exception of the last criteria, there are many organizations that can satisfy most of these criteria but they will probably not be around for fifty years (the average lifespan of a Fortune 500 company).


Managers can focus on achieving these outcomes and they will be focusing on the wrong things. Let’s take the example of the Titanic sinking. Review the above set of criteria. Would any of them have predicted its striking an iceberg and rapidly sinking? For another example, look at any number of corporate bankruptcies from the W.T. Grant Company in the mid-seventies to GM in 2009 and you will find that these criteria would not have predicted their failure and bankruptcy. Granted few bankrupt companies have met all of these criteria, but even if they had, they would be looking in the wrong direction and ultimately they would have failed. The same assertion can be made for those companies that are currently on the corporate “most successful” lists today. Most of them will succumb to the same problems that spelled the death of their predecessors.

Link to the full article


Join in the discussion on fundamental principles for innovation

Fundamental principles for innovation – what´s your opinion?

Come join the online discussion on the fundamental principles for innovation management. The debate is sparked by an article by Heinz Essman, contributing editor on InnovationManagement from South Africa.


Heinz Essmann

In his article, Heinz Essman, contributing editor from South Africa, introduces a set of proposed fundamental principles for innovation. It is indeed a proposal and we are very interested in hearing your views on this. Welcome to read and then visit the to share your views and discuss with like-minded.

Abstract from the article

The process of realising benefits from creativity, the innovation process, can be complex. Numerous process frameworks are available to assist companies with delivering consistent innovation. These frameworks, however, always require significant modification for specific instances. So how does one go about making changes without spoiling the essence of the process? Or, how does one go about developing an innovation model from the ground up? Guidance from a set of fundamental principles is the answer.

Let your opinion be heard.

[From Join in the discussion on fundamental principles for innovation | Articles, Links, Innovation | Strategy2Tactics]

Study: Collaboration with online communities important for corporate image | Network World Asia

Interesting article. Here an abstract from the study.

IT-enabled online collaboration, particularly with online communities, is increasingly important for corporate reputation and brand management, according to a new Economist Intelligence Unit study.

The Verizon-sponsored study, “Dangerous liaisons: How businesses are learning to work with their new stakeholders,” surveyed senior executives worldwide on their views of how an emerging group of non-traditional stakeholders is impacting corporate reputation.

According to the study, 78% of the respondents say that interaction with special-interest groups, non-governmental organizations (NGOs) or citizen groups is important to their business, while 33% say that online communities will be their most important category of “non-traditional stakeholder” in five years.

[From Study: Collaboration with online communities important for corporate image | Network World Asia]

2010 FIFA World Cup: Hvert tredje land kommer fra EU

Ugebrevet Europa har analyseret det kommende verdensmesterskab i fodbold og konkluderet, at hvert tredje hold kommer fra EU.

Uddrag fra artiklen:

Elleve EU-medlemslande er med, når der åbnes for 2010 FIFA World Cup i Johannesburg i Sydafrika. Det betyder, at omtrent hver tredje af de 32 VM-nationer kommer fra EU. Redaktionen har sat et stærkt EU-hold med en markant profil fra hver af de elleve nationer – men udviklingskommissæren hepper på de afrikanske hold.

Verdensmesterskaberne i fodbold starter officielt i aften på Orlando Stadium i Soweto, Johannesburg, hvor åbningsceremonien finder sted. Det bliver starten på en slutrunde, der byder på i alt 64 kampe frem til finalen den 11. juli. VM-slutrunden i Sydafrika er den første på det afrikanske kontinent, og der er blandt andet store forhåbninger til, at Nelson Mandela møder op til åbningen, som repræsentant for ikke bare Sydafrika, men hele det afrikanske kontinent og dets folk.

[From Strategy2Tactics | Blog on strategy, innovation and transformation]

Blogger? Otte vigtige ting at passe på!

Det er blevet mere almindeligt at have en blog. Privat personer, virksomheder og organisationer bruger i stigende grad blogs som kommunikationskanal, men det er fortsat et usikkert territorium at bevæge sig ind på. De seneste skandaler og fyringer af kendte blogger, senest Politiken, viser hvor usikre spillereglerne er på området.

Jeg faldt over følgende artikelserie fra Freelanceswitch, som beskriver otte juridiske områder som en blogger skal overveje i sin færd udi det ukendte.

[From Strategy2Tactics | Blog on strategy, innovation and transformation]

Successful approach for improving innovation management for SME:s

Karin Wall, chief editor of InnovationManagement, has spoken to Dr Eva Diedrichs, who is the responsible project manager for IMP³rove, the European Commission’s major project on innovation management. IMP³rove stands for IMProving Innovation Management Perfromance with sustainable IMPact.

The interview has resulted in a very interesting perspective on how to improve conditions for SMEs in Europe.

Abstract from the interview:

It’s a well known fact that Europe’s competitive potential is dependent on the capacity to be truly innovative and creative in launching new successful products and services. This can be a daunting challenge for many organizations, not the least for small and medium sized enterprises that often lack proficiency in innovation management. IMP³rove is an approach developed especially to meet the needs of SMEs to help them develop innovation management performance with sustainable impact.

[From Successful approach for improving innovation management for SME:s | InnovationManagement]