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Organisational Performance and the Role of Outsourcing

April 11, 2017

 

Although there are many ways to think about performance in an organisation one of the simplest is to consider the four E’s – effectiveness, efficiency, economy and ethics.

 

Effectiveness is the extent to which an organisation achieves its strategic goals. These goals can obviously be very different from organisation to organisation. Efficiency looks at how well an organisation manages the conversion of inputs into outputs, whether they be tangible or intangible. Economy is how cheaply these inputs can be purchased – this is usually not a main criterion as it takes no account of quality of output however does play a part in analysis of budgeting etc. Finally Ethics, organisations that stray too far from the moral standards of the wider community it sits in will incur adverse impacts, such as people refusing to use its services (look at the recent situation in the news with United Airlines physically removing one of its passenger because the flight was overbooked and the subsequent public backlash).

 

When it comes to operations management within an organisation, many organisations practice vertical integration ie the policy of trying to perform as many activities within its supply chain as possible. Many organisations see this as attractive as it gives a high degree of control over performance and cost (the economy part of our four E’s). However the big drawback with vertical integration is that the majority of organisations cannot excel equally in all the activities involved in their operations. This is especially true within the SME market purely because there is usually even less resource to draw from.

 

This is where outsourcing provides a solution. The advantages of outsourcing include factors such as access to suppliers’ expertise, increased capacity creating faster time to market and more flexible supply, reduced capital expense, reduced cost and the ability to focus on core business activities.

 

At Tempus IME we provide outsourced solutions for our clients print management and information management needs. This ranges from us managing the production of their printed business stationery and marketing collateral, to direct mail marketing campaigns and data aggregation, to document workflows and localised re-branding, through to us helping manage their digital assets using our digital libraries and content management solutions. The whole point of what we do is to save our clients time, money and improve the efficiency of their organisation.

 

As one of our customers told us “we are a charity our focus is to raise money to help our clients anything that deviates us from that focus is just a distraction and with limited resource I would rather someone else did it”. This is a prime example of someone acknowledging the importance of the four E’s in their own organisation.

 

If you're interested in learning more about how we can help your organisation please contact us.

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