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    How to Measure The Performance Of Your Business?


    When we look at the statistics we have about the performance our own organizations, what we can all too easily overlook is that there are three measures we can use, so we have to decide which one is most relevant to our situation, or whether we could learn more by looking at all three.

    The three measures are: Efficiency, Economy, and Effectiveness. Let us look at each in turn.



    1. Efficiency: — is the one we tend to be most familiar with, especially if we come from a technical background. It measures the relationship between inputs and output. We might measure inputs in terms of cost or by some physical measure, such as materials or man-hours. Similarly we might measure outputs in terms of sales income or numbers of items produced. It obviously better to achieve a higher output for less cost so we always want to keep an eye on this relationship to see if it is changing, and in which direction. However, when we look at the other two E’s we may see why we need to avoid becoming too obsessed with efficiency. There is the risk of failing to see wood for trees.

    Continue to Read more :- How to Measure The Performance Of Your Business?


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