What is Efficiency?

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 Efficiency - a definition

Efficiency is a measure of
how much effort is required
to achieve a required outcome.

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 Efficiency – example 1
7 litres / 100km 11 litres / 100km

Greater efficiency = less fuel to travel same distance

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 Efficiency – example 2
100 watts per room 40 watts per room

Greater efficiency = less electricity to light the same room

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 Efficiency – Gershon’s
definition:

“Making the best use of

the resources available for
the provision of public services.”

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 Improving efficiency

Reduced inputs
for the same
level of output
or quality of
outcome
Increased Improved
outputs outcomes
for the for the
same same
level of Improving level of
inputs efficiency inputs

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 Reducing inputs

E.g.
 Reducing consumables or consumable costs
 Reducing staffing or staffing costs

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 Increasing outputs
E.g.
 Improved systems and processes
 Working smarter
 Working with greater focus

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 Improving outcomes
E.g.
 Improved systems and processes for service
delivery (i.e. changing what people do)
 Improving the skills of staff (i.e. changing
how they do things)

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 Cashable efficiencies

Cashable gains are those that transparently

release resources that can be reallocated
elsewhere.

e.g. reductions in expenditure achieved or staff time gained

through smarter working methods

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 Non-cashable efficiencies

Non-cashable gains are those that lead to

increased quality or quantity of service
outputs.

e.g. enhanced support provided or measures implemented

leading to
improved service user satisfaction or
fewer defects or errors

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 Why is efficiency important?
Supporting People
 Restricted budgets
 Increasing competition
Housing Corporation
 Expects RSLs to contribute significantly to
Government efficiency agenda (to make best use of
public funds)
Good governance
 Maximises value for money
 Eliminates unnecessary use of tenants’,
commissioners’ and the world’s resources

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 How we ensure efficiency
• Our Efficiency Strategy
• Ensuring efficiency initiatives
• Promoting efficiency awareness
• Measuring efficiency improvements

• Ensuring efficiency involves all of us

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