Wednesday, 27 January 2016

Leadership Effectiveness




                    Today we live in a world where most companies are multinational .Many of them have operations,employees and customers spread across many continents .So leaders face a difficult challenge of implementing their decisions across different culture and languages.Future and well being of such an enterprises depend on the effectiveness of the decisions taken by their leaders.Successful companies take decisions which are in interest of their employees,customers and share holders. I found the equation for calculating effectiveness of decisions in a book on leadership "Too many bosses,too few leaders".According to the author the effectiveness of a decision can be put in the form of a simple formula

E= Q x A

Where
E=Effectiveness of decision
Q=Quality of the decision
A=Acceptance of the decision

                From the above formula we can see that the effectiveness of any decision depends on quality and acceptance of decision. Most leaders understand the importance of term quality of the decision(Q).As a result they try their level best to keep the value of (Q) very high.But very few leaders understand the significance of term (A) in the above equation.A very good decisions if not communicated will not be accepted by the people who are supposed to execute the decision.This will result in very poor effectiveness of the decision(E).From the above equation we can see that the effectiveness of the decision can be increased by increasing (Q) or (A) or both.I will make a few calculations to show how (Q) and (A) have effect on effectiveness of decision (E).


INCREASING Q                                                                      INCREASING A
     
      Q x A =E                                                                                  Q x A =E
                                                                                 
      7 x  3 = 21                                                                                 7 x  3 = 21

      8 x  3 = 24                                                                                 7 x  4 = 28

      9 x  3 = 27                                                                                 7 x  5 = 35

     10 x  3 = 30                                                                                7 x  6 = 42

                 Assuming that the management is ethical and has good intentions, the quality of decisions (Q) they take will always have higher value say 7.So only thing that the management can now work on and increase is the value of (A).From above calculations we can see that if we increase the value of (Q) from 7 to 10 and keep (A) constant at 3 then effectiveness increases from 21 to 30.But on the other hand if if were to keep the value of (Q) constant at 7 and increase the value of (A) from 3 to 6 the value of effectiveness goes from 21 to 42.This show the importance of having high acceptance (A) of the decisions we make as leaders.So always in life work towards making good quality decisions which are communicated and accepted by everyone.This will increase the overall effectiveness of the decisions we make.

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