Holding different light bulbs

In the consulting world we often talk about efficiency and effectiveness. We have often thought what is the point of being more efficient (time taken to complete the process) if what you are doing is not effective (meeting the need).

Let’s look at effectiveness in the context of typical business processes. Most businesses will buy, make or sell something. In order to do that the business will establish a number of processes such as purchasing, accounts payable, inventory management, sales, cash management and financial reporting. Over time these processes are adapted and changed to meet the needs of individuals, customers or regulations. Once established most businesses are reluctant to review how they do things as it’s seen as too hard or not a priority.

So here are some traits that we see in effective organisations that may be of interest to you.

  • Strategy execution drives operational processes.
  • Everyone has knowledge and understanding of the decisions and actions for which they are responsible.
  • Once made decisions are rarely second guessed.
  • Information flows across organisation boundaries.
  • The right information gets to the right people at the right time in the right format.
  • Managers have access to the metrics they need to measure the key drivers of the business.
  • People within the organisation are trained in how to react and respond.
  • Besides pay, many other things motivate individuals to do a good job.Remember – it’s just not about measuring effectiveness but how you achieve it.

    How do you rate your effectiveness?