the 3 E's of Management...

Continuing with the previous discussion on The THEORY X and THEORY Y I would like to discuss another concept as introduced by our professor in class.This is known as the 3 E's of management which is an essential part of any manager.


Effectiveness:
Effectiveness can be explained in terms of what is achieved. It is about whether targets are met or not. Performing effectively means that the right work is being completed. Managers are responsible for making sure that this happens. If a team is working really hard but not delivering what is needed, then they are not effective. Effectiveness is measured by setting out clear objectives before work starts and then evaluating whether the objectives have been met or not.

Efficiency

Efficiency can be measured in terms of the inputs required to generate the outputs. It is about the way in which work is completed. It is part of a manager’s job to help improve efficiency. For example, if the same work can be completed using less inputs or resources then efficiency has improved.

Measuring efficiency means that the process followed to complete the work must be defined and then each part of the process studied to see what resources are required. This becomes the starting point or benchmark for measurement.

Excellence

Excellence is the third element of the three Es model, covering the most important aspects of work being done. It could be argued that excellence is just one of the factors to consider when improving efficiency, but because it is so important in today’s organizations, it has become the third element.It is the mixture of the above two factors and is a result of the multiplication of both.

In an organization

 Excellence = Effectiveness * Efficiency

                                

 

The Best Effectiveness, Efficiency and Excellence Mix

It can be very difficult to find the best mix of effectiveness, efficiency and excellence as there are so many ways to obtain value. For example:

• It may be that the focus is on providing a specific output (effectiveness) for the least cost – this may be at the expense of efficiency.
• It may be that the focus is on maintaining a particular cost (economy) and producing the excellent output for that cost.

Every manager can be a better manager and understanding the 3Es Effectiveness, Efficiency and Excellence can help improve business performance.