ed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate func

Business owners and executives are frequently frustrated because, although their employees are constantly busy and hard-working doing what they have been instructed to do, their companies do not achieve the results that were planned. In other years, results are achieved more because of good fortune and unexpected events and less due to employee’s efforts. How can they truly judge the effectiveness of their organization?

In entrepreneurial companies, organizations are usually built around the strengths and skills of the founders and early employees. As these businesses grow, additional responsibilities are added to those employees who are doing a good job and when they become overloaded new employees are added. Over time, these organizations are destined to reach limitations and obstacles because their structure was not planned to extend beyond the needs of a small company. In larger companies, the organization structure may be gradually altered by adopting one popular management program after another that emphasizes only one goal of the business.

In any business, there are defined functions that must be accomplished if the company is to be successful. When developing an effective organization, a structure should be designed around these critical functions and not the particular skills and interests of the individuals currently working there. Without delineating the functional responsibilities in the employee job assignments, it is difficult to assess what is working well and where organizational changes need to be made in the future.

The same is true when assessing the performance of individuals in the organization. Many times, it is difficult to distinguish between an individual’s effort expended and results achieved. This is generally because management is confused about responsibility for the different parts of organization performance. The accountability for performance effort and results need to be addressed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate funct

around the strengths and skills of the founders and early employees. As these businesses grow, additional responsibilities are added to those employees who are doing a good job and when they become overloaded new employees are added. Over time, these organizations are destined to reach limitations and obstacles because their structure was not planned to extend beyond the needs of a small company. In larger companies, the organization structure may be gradually altered by adopting one popular management program after another that emphasizes only one goal of the business.

In any business, there are defined functions that must be accomplished if the company is to be successful. When developing an effective organization, a structure should be designed around these critical functions and not the particular skills and interests of the individuals currently working there. Without delineating the functional responsibilities in the employee job assignments, it is difficult to assess what is working well and where organizational changes need to be made in the future.

The same is true when assessing the performance of individuals in the organization. Many times, it is difficult to distinguish between an individual’s effort expended and results achieved. This is generally because management is confused about responsibility for the different parts of organization performance. The accountability for performance effort and results need to be addressed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate func

popular management program after another that emphasizes only one goal of the business.

In any business, there are defined functions that must be accomplished if the company is to be successful. When developing an effective organization, a structure should be designed around these critical functions and not the particular skills and interests of the individuals currently working there. Without delineating the functional responsibilities in the employee job assignments, it is difficult to assess what is working well and where organizational changes need to be made in the future.

The same is true when assessing the performance of individuals in the organization. Many times, it is difficult to distinguish between an individual’s effort expended and results achieved. This is generally because management is confused about responsibility for the different parts of organization performance. The accountability for performance effort and results need to be addressed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate func

cult to assess what is working well and where organizational changes need to be made in the future.

The same is true when assessing the performance of individuals in the organization. Many times, it is difficult to distinguish between an individual’s effort expended and results achieved. This is generally because management is confused about responsibility for the different parts of organization performance. The accountability for performance effort and results need to be addressed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate func

ed when employee job descriptions are written and when the performance standards are assigned for the year.

Top management is responsible to develop a comprehensive strategic plan for the business that defines the goals that will satisfy the expectations of their organization’s customers, shareholders, financial institutions and employees. Goals such as revenue growth, profitability, return on investment, customer and employee satisfaction must be identified by the appropriate functional area of responsibility. Goals should be set for the different planning time frames (one year, three years, five years), and they must be objectively measurable. Once established and adopted by the management team, these goals need to be clearly communicated throughout the organization and progress reported periodically.

Top management also has the responsibility to determine the specific strategic focus and resources that will be employed to achieve these goals or results. This requires a thorough analysis and understanding of the market characteristics, customer demands, product requirements and competitive forces. It requires making some hard choices as to where to concentrate the organization’s limited resources to maximize its advantages and competitive strengths. Resources in the form of adequate finances, facilities, equipment and personnel must be secured and in place if the organization is to be able to accomplish the results within the planned timeline.

With the resources available and the business strategies identified, a tactical action plan can be established for each functional area and each key employee in that functional area. It is now that specific performance standards or management by objectives can be established to follow the agreed strategic direction to achieve a defined result in a specified time period.

It is only now that it is possible to accurately distinguish between individual effort or performance in the accomplishment of specified tactical assignments and the actual results that may be achieved because of unforeseen or fortuitous developments outside the control of the individual. It is also important to evaluate if the results added value and are cost effective.

This is also where it is possible to distinguish between an individual employee’s poor performance effort to implement a tactical plan and achieve a specific result and possibly top management’s poor planning wh