Conclusion: Effectiveness is, along with efficiency, the aim of many projects and investments. It is commonly expressed as a ratio, outputs minus inputs. Measuring effectiveness is however a more delicate process of evaluation than employing the blunt, and occasionally, imprecise ratio method, described above.

Comparing effectiveness with other measures of a company’s performance, such as revenue, demonstrates how well a department or a firm is working. It is more valuable than simply comparing a ‘before and after’ financial scenario.

In adopting this type of approach two factors to consider are:

  1. Adequate ‘before” the event data, showing levels of performance is required to assess effectiveness. (Sound after the event data is necessary too.) Measurement of performance and function must use all key variables. These variables may include financial items, benchmarked service levels, and people performance measures such as e.g. job, morale index or similar;

  2. Make any analysis comparative, with the purpose of showing what has been achieved. Grey, and or, so-called mixed results from an effectiveness assessment arise from weak analysis.

Implementing the techniques above should improve the quality of effectiveness metrics and thereby raise the standard of business planning outcomes.

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Guy Cranswick

About The Advisor

Guy Cranswick