Shortened Value Chains

Before moving on, one another thing to notice in Marcella ‚ s chains is that one Individual-level box does not have any measure in it. In the third round of changes that Marcella made to the contract renewal new hire training, the Individuals were not impacted by the changes Marcella made to the cost structure of her intervention. The first opportunity for Marcella ‚ s action to make a difference to anyone was when the charges for the training were passed on to the 1st/Ops hiring managers. In chapter 9, effectiveness was defined as creating new or additional impact on an organization ‚ s financial measures or financial statements such that the impact makes a significant or sizable difference to the success of the organization. Efficiency was defined as delivering the same level of benefit as has been had previously, but for less solution cost. Effectiveness chains often stretch the entire length of the organization. Efficiency changes can create slightly shortened financial value chains.