Efficiency And Effectiveness PDF

Efficiency and Effectiveness LET'S PLAY ! Test your knowledge while having fun ACTIVITY INSTRUCTION IDENTIFY WHETHER THE MISSING WORD IN THE STATEMENT REFERS TO EFFICIENT OR EFFECTIVE  The medicine was ____________ in curing his problem. ANSWER: The book aims to teach ___...

Efficiency and Effectiveness LET'S PLAY ! Test your knowledge while having fun ACTIVITY INSTRUCTION IDENTIFY WHETHER THE MISSING WORD IN THE STATEMENT REFERS TO EFFICIENT OR EFFECTIVE  The medicine was ____________ in curing his problem. ANSWER: The book aims to teach ____________ essay writing. ANSWER:  The machines used at the assembly line were highly _____________. ANSWER: Bicycles are a cheap and ___________ form of transport. ANSWER: The new machine is more ___________ than old one. ANSWER: Television is an ____________ means of communication. ANSWER:  A process is made up of people, work, activities, tasks, records, documents, forms, resources, rules, regulations, reports, materials, supplies, tools, equipment, so on--all the things that are needed to transform inputs into outputs.  An organization, to be successful needs to demonstrate continuously that customer satisfaction and organizational processes are its top most priority, to those responsible for value creation. Differences between Efficiency and Effectiveness Efficiency is the ability to produce an intended result in the way that results in the least waste of time, effort, and resources while Effectiveness is the ability to produce a better result, one that deliverS more value or achieves a better outcome. Differences between Efficiency and Effectiveness Efficiency is the process of using fewer resources, as well as less time and less money, to achieve the same goal while Effectiveness is a measure of doing the "right things." Highly effective individuals and companies act in ways that move their highest priorities forward on a regular basis. Differences between Efficiency and Effectiveness BOTH EFFICIENT AND EFFICIENCY GENERALLY MEAN "HAVING AN EFFECT", BUT EACH WORD HAS ITS OWN DISTINCTIVE APPLICATION.  EFFECTIVE It is used to describe success in It is used to describe a productive human producing the desired result. For Example: 1. The medicine was effective in curing his problem. 2. The actor gave an effective performance in the movie. 3. Television is an effective means of communication. 4. The book aims to teach effective essay writing.  EFFICIENT It is used to describe a productive human or a machine. For Example: 1. The machines used at the assembly line were highly efficient. 2. The new machine is more efficient than old one. 3. Bicycles are a cheap and efficient form of transport. 4. He has an efficient business set up. BUSINESS PROCESS REENGINEERING 1. A central question in resource allocation is how the existing resources and competencies of the organization can be adapted to fit new strategies. 2. Strategic re-engineering focuses on designing the organization to create a dramatic improvement in performance. 3. This is accomplished by undertaking strategic initiatives at the start of the reengineering process that seek to provide understanding of the markets, competitors, and the position of the organization within the industry to change existing business practices. 4. Before the re-engineering of the business processes are carried out, critical success factors required to compete are identified and prioritized. Only then are the individual business processes addressed. Some of the important factors that need to be considered in the re-engineering effort 1. PLACE THE CUSTOMER AT THE CENTER OF THE REENGINEERING EFFORT - CONCENTRATE ON REENGINEERING FRAGMENTED PROCESSES THAT LEAD TO DELAYS OR OTHER NEGATIVE IMPACTS ON CUSTOMER SERVICE. 2. BPR MUST BE "OWNED" THROUGHOUT THE ORGANIZATION, NOT DRIVEN BY A GROUP OF OUTSIDE CONSULTANTS.  3. CASE TEAMS MUST BE COMPRISED OF BOTH MANAGERS AS WELL AS THOSE WHO WILL DO THE WORK AND SHOULD ALSO BE SPONSORED BY TOP EXECUTIVES OF THE BOARD. BPR PROJECTS MUST HAVE A TIMETABLE. 4. BPR MUST INCORPORATE THE ORGANIZATIONAL CULTURE AND MUST EMPHASIZE CONSTANT COMMUNICATION AND FEEDBACK. Benchmarking THIS IS A PROCESS THAT INVOLVES MEASURING THE PERFORMANCE OF YOUR BUSINESS AGAINST A COMPETITOR IN THE SAME MARKET. THIS WILL GIVE YOU A BETTER UNDERSTANDING OF YOUR BUSINESS PERFORMANCE AND POTENTIAL. BENCHMARKING IS A TOOL FOR ASSESSING AND COMPARING PERFORMANCE TO ACHIEVE CONTINUOUS IMPROVEMENT. THE CHARACTERISTICS OF BENCHMARKING ARE MEASUREMENT VIA COMPARISON; CONTINUOUS IMPROVEMENT; SYSTEMATIC PROCEDURE IN CARRYING OUT BENCHMARKING ACTIVITY. ONE OF THE BEST EXAMPLES OF BENCHMARKS COULD BE THE COMPARING OF PROCESSES IN ONE RETAIL WITH ANOTHER STORE IN THE SAME CHAIN. APPLICATION OF BENCHMARKING INVOLVES FOUR KEY STEPS: 1. Understand in detail existing business processes; 2. Analyze the business processes of others; 3. Compare own business performance with that of others analyzed; and 4. Implement the steps necessary to close the performance gap.  TYPES OF BENCHMARKING 1. Strategic Benchmarking simply means comparing the strategy to other successful companies/establishment strategies to identify and determine the differences and opportunity. 2. Competitive Benchmarking a. Businesses consider their position in relation to performance characteristics of key products and services. b. Benchmarking partners are drawn from the same sector. c. It is concerned with comparing your company's products and services. This tool focuses on product and service quality, features, price, speed, reliability, design, and customer satisfaction. In addition, you can benchmark anything that has measurable metrics, including processes. This approach compares the strength of products and services against competition. 3. Process Benchmarking a. This focuses on improving specific critical processes and operations. b. Process benchmarking is a separate type of benchmarking, but it usually derives from performance benchmarking. This is because companies first identify the weak competing points of their products or services and then focus on the key processes to eliminate those weaknesses. 4. Functional Benchmarking a. Investigates leaders in dissimilar industries. b. Businesses look to benchmark with partners drawn from different business sectors or areas of activity to find ways of improving similar functions or work processes. c. This sort of benchmarking can lead to innovation and dramatic improvements. d. Managers of functional departments find it useful to analyze how well their functional area performs compared to functional areas of other companies.  FOR EXAMPLE: A. A LOCAL CAFÉ COULD COMPARE ITS BRAND RECOGNITION TO THOSE OF NEARBY FITNESS CENTERS. B. ALTERNATIVELY, A FIVE-STAR HOTEL COULD BENCHMARK ITS CUSTOMER SERVICE QUALITY TO THAT OF AN AIRLINE COMPANY. 5. Internal Benchmarking a. Internal benchmarking is a process in which a company or an organization looks within its own business to try and determine the best practice or methodology for conducting a particular task. b. Internal benchmarking compares separate teams, units, or divisions internal to an organization. This exercise identifies the entities that are work better and share the knowledge with other teams to achieve higher performance. c. Usually, companies benchmark internal units to create channels to diffuse best practices, promote knowledge sharing, and improve communications. If such systems are in place, you can skip the internal benchmarking exercise. 6. External Benchmarking a. It involves analyzing outside organizations that are known to be best in class. b. External Benchmarking is where an organization compares its performance with other, comparable organizations. Many government organizations want to know what other comparable jurisdictions are doing because they want to see their performance in context. 7. International Benchmarking International benchmarking typically refers to analyzing high- performing education systems and identifying ways to improve our own systems based on those findings.  Benchmarking Helps in Strategic Management Process a. Evaluation and improvements are important parts of the strategic management process. b. Benchmarking is the process of identifying 'best practice' in relation to both products (including) and the processes by which those products are created and delivered.  Are there lessons to be learned from others? a. Understand and evaluate the current position of a business or organization relation to best practice' and identify areas and means of performance improvement. b. Benchmarking provides a clear signal of success or failure of the firm's competence to compete effectively in the competitive arena. c. Benchmarking is often used to identify and develop core competencies and competitive advantage. Thank you for listening!