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The 17 Fundamental Traits of Organizational Effectiveness

>From our survey research drawn from more than 26,000 people in 31 companies,
we have distilled the traits that make organizations

effective at implementing strategy. Here they are, in order of importance.
**

RANK
ORGANIZATION TRAIT

Pl pSTRENGTH

INpDEX

(OUT OF 100)

1
Everyone has a good idea of the decisions and actions for

which he or she is responsible.

81
**

2
Important information about the competitive environment

gets to headquarters quickly.

68
**

3
Once made, decisions are rarely second-guessed.

58**

4
Information flows freely across organizational boundaries.

58**

5

Field and line employees usually have the information

they need to understand the bottom-line impact of their

day-to-day choices.

55
**

6
Line managers have access to the metrics they need to

measure the key drivers of their business.

48
**

7
Managers up the line get involved in operating decisions.

32**

8
Conflicting messages are rarely sent to the market.

32**

9
The individual performance-appraisal process differentiates

among high, adequate, and low performers.

32
**

10

The ability to deliver on performance commitments

strongly influences career advancement and

compensation.

32
**

11

It is more accurate to describe the culture of this organization

as “persuade and cajole” than “command and

control.”

29
**

12
The primary role of corporate staff here is to support the

business units rather than to audit them.

29
**

13
Promotions can be lateral moves (from one position to

another on the same level in the hierarchy).

29
**

14
Fast-track employees here can expect promotions more

frequently than every three years.

23
**

15
On average, middle managers here have five or more

direct reports.

19
**

16
If the firm has a bad year, but a particular division has a

good year, the division head would still get a bonus.

13
**

17
Besides pay, many other things motivate individuals to do

a good job.
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-- 
"There is no end to the adventures that we can have if only we seek them
with our eyes open" - Jawaharlal Nehru

Vanakkam Subbu

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