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April 27th, 2017
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Gaining Efficiency and Effectiveness

Entered by: Jon Rush @ 13:49:52 on 30/04/09

Managers of SME businesses that are going through tough trading times are often confused or surprised when they take the time to review their internal processes and procedures only to find that some or all, of them are not working in some way or another.

Process malfunction can range from Order & Sales through to processing and paying supplier invoices, to making sure that their tax affairs are up to date. It should come as no surprise that a lot of these problems eminate from lack of management communication and basic process checks.

In order for a workforce to function properly, it requires consistent direction from the Directors of the Company. The Directors need to communicate to their managers what they should be concentrating on based on what is important to achieve the Company's strategy. Once this is acknowledged by the senior managers, they must then devise the correct course of action, (tactics), for their direct reports and so on. This ensures effectiveness by doing the right things.

Once effectiveness has been achieved, the managers must then turn their attentions to efficiency, doing things right. This means continuously checking that processes and procedures are in place and that their employees are completing the right tasks in the right way. The quickest and easiest way to achieve this is by using Key Performance Indicators (KPIs). KPIs allow a manager to easily monitor how processes are performing without havng to go through huge amounts of detail. Once a process has been identified as being "out of control", action can then be taken to correct the process.

If the above basics are not being performed in an organisation it should not come as a surprise when the origanisation does not achieve desired results.

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