How to Achieve Cost-Effectiveness

In order to become cost-effective, an organization must free resources associated with unproductive activities.  Three principles govern the freeing of resources:

Occupancy: Being fully occupied in value-added activities all the time

Effectiveness: Selecting and working on the right things

Efficiency: Expending the least amount of resources for a given objective, or, for a given amount of resources, attaining maximum output

One can always make occupancy 100%, since it is always possible to do something else while waiting.  To achieve effectiveness, apply a three-part rule-out procedure which includes screening (eliminate what nobody should be doing), delegation (assign what should be done, but not by you) and planning (what is left is by definition is what you should do, and it requires careful planning).  Efficiency relates only to the way in which you are executing a task.  You have attained peak efficiency when you cannot perform the task any better.

Effectiveness consists of picking the right outputs, efficiency consists of turning inputs into outputs in the best possible manner, and occupancy means doing it all the time.  Application of these resource-freeing principles will ensure cost-effectiveness.