Paul Maguire, Business Consultant, United States
The term “efficiency
” speaks to the cycle time – how quickly an object (organization, person, or product, etc.) is transformed.
The term “effectiveness
” on the other hand, speaks to how well the process is performed; the quality, the low variance, the outcomes, etc.
The Balanced Scorecard can have positive impact on both
of these aspects through organizational alignment and performance results against targets.
A concrete example of how this can work is the rationalization of initiatives – inventorying against the initiatives, stopping duplicative initiatives, initiating new projects where gaps exist and prioritizing.