Solving the organizational effectiveness puzzle first

Working on organizational efficiency initiatives and projects is not going to make a significant impact on the competitive position of an organization if its effectiveness within the environment is not satisfactory. Organizations have to solve the organizational effectiveness puzzle first in order to immerse themselves into actions regarding organizational efficiency. Only when customers are getting what they want (with the WOW effect if possible) and other stakeholders are satisfied, thus making organization viable, the managerial focus can shift toward increasing organizational efficiency at the level of organization, process, and individual performer. Of course, the work on effectiveness and efficiency usually overlaps in practice, but the point is that managers need to stop being obsessed with the efficiency by squeezing every drop of the bottom line whenever and wherever possible just to prove themselves to the shareholders, while ignoring effectiveness, which is usually a much bigger issue with the long-term repercussions.