189 – Essay No. 2 – Local government, effectiveness and efficiency.

Posted by Lancing Farrell                                                                              3300 words

false economy cartoon

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People in local government regularly discuss effectiveness and efficiency. Often this happens in relation to pressure on revenues, such as rate capping. Most of the discussion centres on efficiency rather than effectiveness, and opportunities to stop delivering those services that are seen as ‘cost shifting’ from other government. The efficiency discussion is often not well informed. Frequently it focuses on inputs while ignoring outcomes and public value. Any savings are usually equated with cost cutting, not creating the same value at lower cost.

Australian researcher and writer Christopher Stone has published several papers on ‘false economies’. Each addresses a different aspect of productivity and efficiency in the public sector.

“Everyone has the right to know that money is not being wasted; that it is being spent as efficiently as is possible.” Christopher Stone, Decoding Efficiency, April 2013.

So, what is efficiency and how does it differ from effectiveness? Continue reading

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107 – Separate, relate and integrate. Redesign operations to meet services demands.

Posted by Lancing Farrell                                                                              570 words

good cheap fast

Some basic tools are needed to redesign operations to improve performance. Many people charged with responsibility for managing services have limited skills in how to redesign and improve them. Here is a simple and effective approach – just separate, relate and integrate.

The separate bit is about understanding the different demands being placed on the system. Usually, a performance problem is masked by a mess of different demands that have been mixed in one or two delivery processes. The important characteristics of services demand are the expectations of people creating the demand and how the demand is presented. It is essential to separate each type of demand according to its performance objectives and characteristics. Continue reading