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Organisational Effectiveness: Process efficiency or process effectiveness?

Organisational Efficiency and Effectiveness, Performance Measurement, Process Design, Process Review / / / , , ,

Process efficiency and effectiveness are words often used interchangeably, but the reality is that business need to consider both process efficiency and process effectiveness to optimize revenue and profits.

Process Efficiency

Process efficiency refers to the close tracking and monitoring of the performance of existing processes.  It is an important aspect when measuring productivity and is often a pertinent aspect during the implementation of new technology.

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify inefficiency.” – Bill Gates

Regular review of the input provided by internal (team members) and external (customers) stakeholders serve to measure how efficient the allocation of resources is, efficiency in the execution of tasks and outcomes.  Reducing waste and costs, improving productivity and customer services (doing what is right) are amongst the things that continuously drive improvements in operational efficiency.

Process Effectiveness

The relevance and applicability of a process, measures the effectiveness of it.  Is it fulfilling the needs and demands of internal and external stakeholders?  An effective process will provide the right outcomes (doing the right things) for its stakeholders, at the right cost, the right time, and the right place.

“Excellent firms don’t believe in excellence – only in constant improvement and constant change.” – Tom Peters

Constant innovation and change through stakeholder engagement and interaction, supports the notion that business excellence is achievable.  Regular reviews and assessments of process effectiveness is a business imperative and ensures that processes remain relevant and deliver on business objectives.

Consider process efficiency and effectiveness on a continuum where both process efficiency and effectiveness are required to ensure that strategic and operational business objectives are achieved.

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Organizational Efficiency and Effectiveness: A pipe dream or a reality?

Organisational Efficiency and Effectiveness, Performance Measurement / / / , , ,

Have you redefined what organizational effectiveness and efficiency means for your business in times when our resources are not necessarily physically accessible and controllable?

Organizational Efficiency

Organizational efficiency measures the relationship between inputs and outputs.  That is, it means that the better the output (products or services) achieved with the inputs (resources) used, the more efficient the business is.  Efficiency does not mean that an organisation is automatically productive, effective and successful. 

If the efforts of business are not aligned to the goals of the organisation, efficiency is inconsequential.

Organizational Effectiveness

A simplistic description of organizational effectiveness is that it relates to the ability of a business to attain its goals by utilising its resources effectively.  Similarly, it does not necessarily mean that resources were used efficiently. Thus, strategy planning, goal setting and performance measurement is critical to set standards and obtain organizational effectiveness. 

“Efficiency is doing things right; effectiveness is doing the right things.” – Peter Drucker

Due to COVID restrictions we mainly manage our resources remotely.  Managing human resources remotely and keeping them engaged is challenging us to think differently.  Strategic planning, goal setting, key performance indicators and empowerment of resources is critical to organization efficiency and effectiveness.  Now more than ever before, it has become especially important to have daily interaction with your team on a personal level, to remove obstacles to performance and to track progress.

Consider collaborating with your team and others to define what efficiency and effectiveness mean for you.  A collaborative mindset will build a great team culture, develop team cohesiveness and encourage innovation.

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A brand-new Website!

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After weeks of hard work and dedication we are proud and delighted to officially announce the launch of our new website.

Our goal with the new website is to provide visitors with a more intuitive structure to access our services and solutions.  The new website is creative, interactive and informative. Allowing visitors to browse information based on their own choice.

Our current and prospective customers will find useful information about our services on our home page, as well as helpful information and relevant articles in the blog section.

We would like to thank our amazing collaboration partner Upfront Solutions for donating time and energy to make the site a reality.

For any questions, suggestions, feedback, or comments, please contact us.

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