Business Energy = E² = Effectiveness X Efficiency

Effectiveness is the ability to get things done. 
Efficiency is the amount of resources consumed in order to get things done.
The less resources consumed, the higher the efficiency.

What makes the business Effective?

• Vision
• Engineering
• Production
• Management

Vision is the big idea, the big picture.  It is the value proposition to the world with the expectation that someone will pay for it.

Engineering is the design of the engine of the business that is in line with your vision. A modern business engine includes business processes (aka internal controls) and the technology (hardware/software).

Production is the actual work performed by people in the business.  This includes bringing customers, doing the work, getting paid by customers and paying employees and vendors.  Production rides on the business engine, and it will produce results commensurable with the “well-being” of the business engine.

Management performs the engine maintenance function.  Management is responsible for the “well-being” of the business engine.

What makes the business Efficient?

• Right People
• Lean Business Processes
• Software Integration
• Good Reporting Mechanism

Right People - work oriented, positive attitude.  Everything else could be trained.

Lean Business Processes.  An effective process is not necessarily an efficient one.  You can fly from San Diego to Los Angeles through Tokyo. This is effective, since you will reach the goal to be in LA, but it is obviously not efficient, considering amount of time and money needed for the trip.  As business develops, the new processes grow on top of the old ones, causing a slow down of operations.  Such processes need to be trimmed or completely overhauled.

Software Integration.  The primary purpose of software is to increase the efficiency.  Often an enterprise will employ several software packages that perform different function, but contain the same data.  For example, a CRM package may be different from the accounting package, but both packages will maintain customer information.  Integration of the data exchange between the packages can dramatically improve the efficiency.

Good Reporting Mechanism.  In the world of technology, the reporting has one major rule: if the data is already in the system, it should not be entered again elsewhere.  This rule is broken too often, creating huge inefficiencies.  The first sign of inefficiency is the extensive use of spreadsheets (Excel, Lotus, etc.)

During the optimization process, Business Optimum, LLC focuses on all of the aspects.  Hiring and managing people remains with the client management.