What is Organizational Performance?

You will see mention of Organizational Effectiveness, Organizational Performance and Strategic Management throughout this website and offerings. Here are our definitions:
 
Organizational Performance: A historic track record of growing the market value of the firm greater than a market index or peer group.
 
Organizational Effectiveness: The capabilities, resources, linked activities, processes, physical assets and intangible assets to execute future cycles of growing the market value of the firm greater than a market index or peer group and faster than the index or peer group.
 
As you will see, we think valuation for the private for-profit firm and shareholder value for the publically traded firm is the overall best measure of performance and effectiveness. These measures and the disciplines contained within them allow for the best chance of aligning everything in the firm towards desired end results. We do understand not everyone agrees with us. We will discuss this at various places in our website and offerings.
 
Strategic Management –
 

Strategic management is the management and leadership of a strategy framework that will position an organization for sustainable superior performance through time and then actually achieve the superior performance through time.

Strategy framework– holistic framework for continuously asking and answering key strategic questions

Superior performance– performance at the level of #1 or #2 in the respective competitive arena or against a known benchmark – like earning more than the weighted cost of capital, or any other notion of winning compared to an agreed to reference point

Key strategic questions – paradigmatic questions about an organization’s strategy that emanate from a respective school of strategy thought. The most widely known is the Positioning School, best promulgated in my view by the Harvard Business School Competitive Strategy Group. Another example is the Systems Dynamics School

Strategy – an aligned, mutually supportive, linked and hard-to-copy set of choices – activities, capabilities, resources and actions – that allows the discovery of new opportunities and that expects to achieve superior performance against an agreed to performance reference point through time