CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

EFFICIENT (adjective):
Performing or functioning in the best possible manner with the
least waste of time and effort.
SOURCE: www.dictionary.com
Efficiency is the degree to which activities or operations accomplish something with the least amount
of waste. It is competency in performance.
Where effectiveness is about ‘doing the right things’, efficiency is about ‘doing things right’.
It is efficiency, or the lack thereof, that typically persuades stakeholders to stay with an organization,
or to defect to another. Stakeholders might be lost because an organization has done something to
push them away, or because another organization has done something to attract them. Conversely,
stakeholders might be retained by things an organization does well, or gained as a result of another
organization’s activity.
Focus on efficiency requires definition of:
• What would make a stakeholder leave?
• What will encourage stakeholders to stay?
This matching process is one that should be assessed regularly. Conditions can change requiring
the constant assessment of stakeholder relationships. As stated above, these changes can be the
result of an organization pushing stakeholders away, or the result of another organization pulling
them away.
The starting point for managing performance must therefore be to answer the question:
What is the purpose of the organization?
To be successful, we must then define and deliver the things that will attract and retain
stakeholders.
These concepts on organizational purpose are, for any type of organization: profit or not-for-profit;
private or public; international, national or local; small or large. These concepts are broadly
applicable, though their importance will vary with the situation. For the purposes of this course, we
will focus on the application of the concepts to humanitarian organizations.
To begin, we will explore how humanitarian organizations seek to satisfy stakeholder expectations.
As is the case with other types, humanitarian organizations have a purpose. Humanitarian
organizations also have to think about how to attract and retain stakeholders. Amongst their
stakeholders will be:
• Beneficiaries
• Local community
• Suppliers
• Governments
• Employees
• General public
• Donors