“Researchers analyzing what CEOs and managers do have pointed to control, innovation, and efficiency as the three most important processes managers use to assess and measure how effective they, and their organizations, are at creating value (L. Galambos, 1988)”. Control is essential over the external and internal environment by knowing what the demand for a business is. A tool to help make these decisions with control is to conduct a trend analysis. An analysis will reveal patterns be it internal or external of an organization. To identify current patterns along with the status of the organization managers are able to determine how to restructure the business in or to produce product or services in the most efficient way possible. This may include adding additional skills, technologies, or current assets to the current workforce anything that will produce the best output of an organization in the most efficient way. An organization must be innovative when introducing their product or services to the market. This may require management to demand radical changes to the organization by improving or changing processes, advertising, and just acquire the capability to adjust to any environment the organization has to confront be it internal or external. An organization does not need to use the three methods to assess and measure organizations effectiveness it would depend on what needs attention, but it is always good for an organization to know the health of their organization pertaining to the three measures.
Table 1 (Jones., 2010)
Revenue: Over $5 bil.
Employees: Over 10,000
Fortune 1000, Fortune 500, Russell 3000
Industry: Aerospace & Defense , Consumer Electronics , Consumer Goods , Manufacturing SIC Codes: 3663
NAICS Codes: 334220
L-3 is a prime contractor in Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, aircraft modernization and...
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