Measuring knowledge worker productivity and assessing how it contributes to an organization’s overall effectiveness is a difficult proposition. The rewards of doing so are twofold. Measurement allows the executive management to help an organization to guide and direct its valuable human capital towards the goals that have been identified and set. In turn, the ability to better manage knowledge workers opens the door to new and innovative ways that help foster their loyalty, creativity, and productivity.

So, What is Organization Effectiveness?

Organization effectiveness is not limited to just productivity, but it certainly encompasses it. Productivity, which has been a human concern for centuries, is defined narrowly as the amount of physical output for each unit of productive input. Defining the output for non-manufacturing service activities, commonly termed as ‘knowledge work’ ? which include IT services and products, transportation, retail and logistics, finance and insurance related services rendered to individuals and businesses ? is tricky and problematic.

Who Contributes to Organization Effectiveness?

Each and every employee contributes to organization effectiveness. Based on the skills, experience, and rank some have a better opportunity to play a bigger role than others. Establishing a successful and sustainable organization takes more than just management expertise. It requires genuine leadership – the ability to guide individuals and teams to their highest level of collaboration, innovation, and effectiveness. Today’s leaders play many roles, like that of a visionary, role model, architect and defender of values, team builder, coach, change agent, strategist, economist, and advocate of excellence. While productivity and economics have always been important issues, today’s leaders also understand the importance of creating a values-driven vision that becomes the benchmark for individual and organizational decision-making. Leaders seek best-practices that produce integrity, adaptability, sustainability, and execution.