Leaders of organizations should monitor success metrics as opposed to effectiveness measures. Performance metrics look specifically at the measurable measures that can be placed in order to evaluate an organization’s performance against its strategies. Customer, financial, and process measurements are tracked (Tunowski, 2015). Assessing an organization’s success in the administration of the organization guarantees the organization achieves its goals and achieves its objectives. The measures identify conditions that hinder the organization from meeting its aims, and the leaders will put in place the right actions. The measure of effectiveness mainly looks at how effectively an organization achieves its goals.
In the management of products, managers should prefer the evaluation of performance since it improves the bottom line through improving productivity and process costs. Mission effectiveness is also achieved through evaluation of performance. Through performance evaluation, a leader and organization management is allowed to align their strategic activities with the strategic plan developed for a project. The improvements that should be made in an organization can be determined through evaluation of performance and not on the evaluation of effectiveness (Tunowski, 2015). Evaluation of effectiveness would only identify the areas that could be changed in a process but not the quantitative aspects that should be changed in the process. Evaluation of performance, however, looks at the aspects that could be changed in a process to achieve the goals.
The visibility product through the evaluation of performance supports faster and better control of processes and decision making in the organization. Decision making and control of the process is one of the goals of a good leader. Through evaluation of performance visibility of an organization is obtained. The visibility provides accountability and the right incentives relying on real data and not subjective judgments as it is in an evaluation of effectiveness (Kambi, 2012). Performance evaluation allows benchmarking and comparison of the organization against other competitors. A good manager would want to know the position of the organization as compared to the competitors. Evaluation of performance is a tool that such a leader would use to achieve this.
Some of the approaches that can be used in the measurement of organization effectiveness include system resource, goal, internal-process and strategic constituencies approach. Most of these approaches are also considered in performance evaluation, and the use of performance evaluation will ensure all these are attained (Kambi, 2012). Some of the approaches used in the measure of effectiveness have drawbacks that can only be solved through performance evaluation. In a system resource approach that has mainly been used in effective evaluation, a higher amount of resources obtained are bot promising effective usage. It is also difficult in determining an ideal degree of resources acquired across organizations. This drawback, however, can be solved through performance evaluation. Through performance evaluation, the effective use of resources can be determined through a look at the quantitative aspect of the use of these resources.
In conclusion, a senior leader should track measures of performance rather than tracking the measure of effectiveness. Through measures of performance, a senior leader manager can make decisions and control processes after considering the quantitative aspects and not based on subjective reasoning. Performance evaluation allows alignment of an organization to its strategies as it identifies some of the factors that could prevent achieving the goals and provide the right adjustments.
Kambi, B. (2012). Team Work For Business Organization Perfomance. Saarbrücken: LAP LAMBERT Academic Publishing.
Tunowski, R. (2015). Organization Effectiveness and Business Intelligence Systems. Literature Review. Management and Business Administration. Central Europe, 23(4), pp.55-73.