If, as a leader, you are tasked with setting up opportunities for assessing whether your organization is effective in meeting its goals and objectives, what approaches could you take? Would you use surveys and questionnaires? How about focus groups of employees? Or of stakeholders? Would you interview key managers? What key indicators of performance (e.g., financial, employee performance, goal accomplishment) would you examine?
Organizational success or performance may be measured using two approaches - quantitative and qualitative. Through these two approaches, the company's true picture may be determined. They may also predict possible problems that a company may face in the future.
Quantitative measures will provide data on financial and economic performance - these are the major financial ratios (liquidity, profitability, debt, among others). Financial performance of an organization may be analyzed on a year-to-year basis to identify the trend. Organizational financial performance may also be compared with those of the other players in the industry in order to determine the company's competitive position.
Qualitative measures intend to collect qualitative data such as satisfaction and loyalty of customers and other groups of stakeholders as well as motivation and job engagement of employees. Qualitative measures may take the form of survey questionnaire, interviews, and observations.