From my limited observations, I think that most organizations get stuck at sub-optimal levels of performance, not because they lack resources or capabilities, but because they inadequately look inwards to assess their levels of organization performance and take appropriate actions thereafter.In fact, in many cases the concept of organization performance is itself not completely understood. It is more often seen as a derivative of external signals. In a for-profit case, this external signal is typically how well the entity is doing financially in relation to competition, industry or market, and in a non-profit case, it is how well is the entity doing in sustaining existing and drawing additional sources of funding.
Are prevalent external indicators of organization performance appropriate? Are new frameworks that capture internal measures of organization performance adequate? What new frameworks can be evolved for driving higher degrees of performance?While these signals are necessary, I believe that they are not sufficient and more so not timely. One of my arguments is that these external proxies of organization performance more often than not come late, as a result of which the resulting actions may not be timely or appropriate. For example, for an academic institution to simply rely on annual rankings conducted by external entities to assess its performance is grossly inadequate. Similarly, to look at student placement statistics to gauge how well it is functioning is both inappropriate and ill-timed.
It is my submission that there are internal indicators that organizations could well inquire to assess and step up their performance levels. However, in my view, the conventional non-financial measures and instruments administered regularly towards this end, such as employee morale or satisfaction, provide little insights for meaningful action. Most of these measures indicate symptoms, rather than root causes, for achieved performance levels. Some strategic performance management tools like the Balance Scorecard are useful in providing insights to monitor and control the degree of employee alignment towards achieving the organization mission. However, their utility in understanding the true drivers of employee engagement and actions needed to propel a higher degree of performance is limited.
It must be noted that the degree of difference between employee alignment and engagement is not just semantic in nature. In my observations, most organizations that I have come across, have had reasonable success in ensuring employee-organization alignments, with committed and productive workforce. The machinery is kept well functioning with right structures and systems, and aligned skills. However, evidently many of the employees' capabilities relevant in the organization context remains blissfully underutilized or latent due to poor engagement.
It is to be seen how the current frameworks evolve and what new and tools come into practice to provide insights.