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Our expertise in Organizational Effectiveness

  • Improve the productivity and effectiveness of Sales, Marketing and Customer Service functions
  • Design efficient and decision enabling reporting tools and processes
  • Build effective management processes (capital allocation, human resource management, budgeting, ...)
  • Develop and implement successful outsourcing strategies

 

 

Effectiveness Vs Productivity (*)

Although efficiency implies the combined notions of effectiveness and productivity, distinguishing between the two terms provides a better framework to rebuild the right organization and processes for various activities within a company. Such a distinction helps in prioritizing the objectives and, therefore, the plans for each activity or group thereof.

For example, in areas such as executive structures and business critical decision making processes such as capital allocation, effectiveness should be the primary objective, subject to some guidelines for productivity and cost control.

On the other hand, transactional activities such as accounting and basic IT operations generally imply a search for productivity, subject to meeting a baseline quality level.

A clear vision of key success factors for each activity will allow to distinguish between those activities where effectiveness should be the primary objective and those where productivity should be the dominant goal, and will lead to enhanced sustainable results. Otherwise, any efficiency or cost reduction undertaking will at best generate one -time non-recurrent results.

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(*) Effectiveness is defined as the capability to produce a desired effect in a system or enviroment. The type of effect could be quantitative such as market share increase, or qualitative such as image. Productivity is defined as the capability to produce a given volume of work/output in a system with a given volume of energy/input. The measure is generally quantitative and relates to a specific task

While Productivity measures a first order volume performance of a task, Effectiveness measures a second order effect of an action or a strategy.

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© 2003 Arestan Consulting