For nearly two decades, I’ve had the privilege of working as a performance psychologist, merging a lifelong passion for sport with a deep curiosity about human behaviour. On and off the field, I’ve seen the incredible impact that mindset, culture, and leadership can have on performance outcomes.

And yet, there’s a persistent challenge I’ve observed — both in elite sport and in the corporate world.

Despite overwhelming evidence to the contrary, performance psychology is still often seen as a “nice to have” rather than a non-negotiable. The same can be said of organisational effectiveness (OE) strategies in business.

So, why is something so fundamentally linked to results so frequently undervalued?

The Psychology-Performance Disconnect

We know from countless studies that organisational culture, leadership capability, and employee engagement are directly correlated with business success. Research from Gallup, Harvard, and McKinsey consistently shows that investing in people pays off through higher productivity, lower turnover, and increased innovation.

But here’s the catch: translating the intangibles of culture and people into tangible ROI can feel daunting. That uncertainty often leads organisations to deprioritise OE, especially when budgets are tight.

However, forward-thinking organisations are turning this narrative around, because they know that OE isn’t fluff. It’s strategy.

Measuring What Matters: OE in Economic Terms

When assessing the value of organisational effectiveness, we must ask the right questions:

• What does it cost when we lose a high-potential employee?

• How much productivity is lost through disengagement?

• What is the return on a leader who can coach, motivate, and inspire their team?

These questions have measurable answers. In fact, many leading companies now assess metrics such as:

• Employee turnover and replacement costs

• Selection accuracy and recruitment expenses

• Performance variability between high- and low-fit hires

• Training impact and retention of capability

• Employee wellbeing and self-care behaviours

• Organisational commitment and job satisfaction

When captured and analysed effectively, these metrics tell a compelling story—and build a strong business case for a robust OE strategy.

A Case Study in Strategic OE: Arts Centre Melbourne

Arts Centre Melbourne (ACM) provides a powerful example of OE done right. After reporting a $7 million loss in 2013, the organisation reimagined its approach—elevating people and culture to the centre of its strategic plan.

As CEO Claire Spencer explained:

ACM partnered with OE consultants to define its desired culture, align leadership behaviours, and embed these values into every system and process. The results were telling:

• A significant increase in staff engagement (2015–2016)

• A 97% customer satisfaction rating

• Clear articulation of purpose, values, and vision

• A return to commercial profitability

This transformation wasn’t magic. It was method. And it’s repeatable.

Building a Strategy that Sticks

You might already have elements of an OE strategy in place—but is it comprehensive? Is it aligned to your organisational goals and culture? Is it grounded in behavioural science?

A truly effective OE strategy considers the entire talent lifecycle:

• Recruitment and Selection: Using evidence-based assessment tools to hire for both skill and culture fit

• Leadership and Team Development: Fostering self-awareness, capability, and trust through coaching and targeted development

• Culture and Engagement: Creating psychologically safe environments where people thrive

• Wellbeing and Resilience: Supporting sustainable performance through individual and systemic wellbeing initiatives

• Career Alignment: Enabling growth through career pathways, transition services, and organisation design

Each element must be tailored to your unique context—and regularly reviewed to ensure it evolves with your organisation’s needs.

Strategic, Not Reactive

The most successful organisations treat OE as proactive, not reactive. They don’t wait for cracks to appear before investing in their people systems. They build the capability, clarity, and culture needed to unlock performance before it’s urgent.

Yes, developing an OE strategy requires commitment. But approached systematically, and supported by skilled practitioners in organisational psychology, the return on investment is significant—both commercially and culturally.

As Robert Levering famously said:

Is your organisation set up to be that kind of workplace?

If you’re ready to explore the ROI of organisational effectiveness, let’s start a conversation.

Reach out to a Steople consultant and discover what’s possible when psychology meets performance.

Contact us to learn more.