Lean Transformation – From Efficiency, Effectiveness, Productivity to Process, People, Purpose
Peter Liao
Assistant Researcher at 中華經濟研究院 Chung-Hua Institution for Economic Research
The lean transformation is to think about Efficiency, Effectiveness, Productivity and align them with Process, People, and Purpose. The summary is as follows for your reference.
1. Efficiency: an internal measure of performance for a process that shows how well the process converts inputs into outputs. It is "doing things right."
2. Effectiveness: an external measure of performance and indicates how well a Process fulfills various stakeholders' demands. It is "doing the right things."
3. Productivity: It measures how well a company transforms resources into products. Productivity is the combination of efficiency and effectiveness. To be productive, a company needs to be efficient and effective at the same time.
4. Process: How to improve the process as easier, better, faster, and cheaper?
5. People: How to develop our people? How to drive engagement and commitment?
6. Purpose: Doing well by doing good. How can we create sustainable values for all stakeholders?
CEO @ FARRAGUT | Strategic Leadership, Long View and Common Good
3 年This simple visual ties many important concepts together. Very effective and efficient in communication!
SR PLANT MANAGER
3 年Thanks for posting