What is the difference between resource efficiency and flow efficiency?

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What is the difference between resource efficiency and flow efficiency?

As a Lean-Agile & DevOps Consultant, I frequently encounter individuals grappling with a pivotal question, which is: “What is the difference between resource efficiency and flow efficiency?” 🤔

The significance of this question cannot be understated, as these two concepts are foundational pillars of any streamlined, effective Agile process. Therefore, a clear understanding of both terms is crucial to successfully implementing Agile practices.

🎯 Let’s deep dive into these fascinating aspects of Agile efficiency, breaking down their complexities and exploring their distinct characteristics! 💡

Resource Efficiency: Optimising the Human Machines

Resource efficiency is optimising resource utilisation, including human resources, for maximum output. 🏋️‍♂️ It’s a popular approach in many organisations because it seems logical - you want to get the most out of your materials, and yes, people are often considered ‘materials’ in this context.

It’s like viewing your team as machines in a factory that you’re paying rent for. You’re concerned with how much product each ‘machine’ can churn out and how to increase that output. This might seem reasonable, but remember. We’re dealing with people, not machines, especially in fields involving complex tasks.

When organisations focus solely on resource efficiency, they run the risk of turning their teams into ‘feature factories.’ High staff turnover and employee dissatisfaction often result in people may feel undervalued and unappreciated for their unique skills and contributions. They might think, “Why should I stay if I’m not being rewarded for the expertise I bring?”

Flow Efficiency: Looking at the Bigger Picture

In contrast to resource efficiency, flow efficiency focuses on the holistic flow of work through the system. It’s not about optimising any one resource but understanding how work progresses through different stages of your process.

For instance, let’s take sales teams in some organisations. They might optimise leads and generate a lot of work coming into the system. However, if the rest of the organisation can’t deliver on these leads due to capacity constraints, pressure mounts on the engineering teams, creating a stressful work environment.

Flow efficiency helps identify these bottlenecks and optimise the system, creating a balanced, sustainable work process. It encourages craftspersonship, valuing good work and understanding why what you do matters to the organisation. 🛠️

Resource Efficiency vs Flow Efficiency: A Balancing Act

Comparing resource efficiency and flow efficiency, it’s clear they approach optimisation differently. Resource efficiency focuses on delivering more, whether projects or widgets, often overlooking the strain it puts on people and processes.

On the other hand, flow efficiency strives to enhance the value delivered by improving the entire system’s workings.

To be clear, it’s not about choosing one over the other. It’s about finding the balance and knowing when to focus on resource efficiency and when to shift the focus towards flow efficiency. 🔄

It’s About the System, Not Just the Parts 🧩

In conclusion, while resource and flow efficiency may seem like contrasting concepts, they are integral to creating effective and efficient work processes.

The trick is knowing how to leverage each at the right time to create a system that delivers value without overburdening its resources.

So, are you optimising your resources or your flow? Maybe it’s time for a reassessment. Take a step back and look at your processes.

You might find that a change in perspective brings about a change in productivity.

Let’s optimise together, creating a balance between resource and flow efficiency for a more sustainable and effective workflow. 💪

Keywords:       Resource efficiency, Flow efficiency, Optimisation, Agile processes.

Specific:           #ResourceEfficiency, #FlowEfficiency, #Optimization, #AgileProcesses

#Agile, #AgileCoach, #Scrum, #ScrumMaster, #AgileCentre, #ProductOwner, #BusinessAnalyst, #AgileProjectManagement, #BusinessAgility, #ScrumTraining, #AgileProductDevelopment.

Oh, that’s a great question. So, the question is what’s the difference between resource efficiency and flow efficiency? And first off, I do want to say that most organizations and most teams focus on resource efficiency. That’s where you worry more about your access to materials, with people being considered materials in this case. Right, people are resources, and we want to optimize the amount of time that they spend doing the thing as if they’re machines in a factory that you’re paying a rent for, right? You’re paying maintenance for, and you want to maximize the output of that machine.

Unfortunately, in our world of complexity, we’re not doing the same thing over and over and over again like a machine does, so we can’t optimize with patterns in that way. I mean, there are patterns we can optimize with, but not in the same way that we can with machines. So, when you focus on resource efficiency with a group of people, you end up with feature factories. You end up with unhappy people. You end up with high staff turnover, right? Because people don’t really care about your company. They don’t really care about what you’re trying to do, and they feel like you’re not rewarding them for the expertise and capabilities they’re bringing to your organization. So, they’ll be like, “Well, I’ll go somewhere else that’s offering me more money,” or “I’ll go somewhere else because I don’t like you anymore,” or “My boss sucks,” or whatever it is.

Whereas in a flow efficiency environment, you’re looking holistically at the flow of work through the system rather than optimizing any particular resource. A great example of that, I think, is in organizations that have sales teams. Quite often, they optimize sales for leads and more work coming into the system, but you don’t actually have the capability to deliver that work in the system. So, sales is overselling, and then the engineering teams need to suffer because they have to try and deliver within the bounds of that world of, “We’re under high pressure. We can’t actually solve the problems that we want to solve. We’ve just got to get stuff out the door, get it done, get it finished.” And that doesn’t breed happy people or, you know, it doesn’t break the craftsmanship or craftsmanship. I don’t know if that’s a word, but that idea that I want to be good at what I do. I want there to be value in what I do. I want to understand what it is that I’m trying to achieve and why it matters, right? What’s the work I’m doing, and how does it matter to the overall organization?

So, flow efficiency tries to look at holistically across the flow of work, right? Are we optimizing in the right areas? Are we able to see that when we increase the—what would you call it? If we optimize this one resource, what effect does it actually have on the rest of the system? Right? What effect does it have down the line? If we optimize for software engineering, the developers are churning out stuff, and we’ve got testers as a separate entity here. Are they then overburdened? And then it looks like they’re the problem, and we’re all blaming the testers for not getting stuff done.

So, flow efficiency is about looking holistically across the system, understanding the flow of work through that system, and how do we optimize to maximize the value that we’re delivering through the system. Resource efficiency is looking at how do we deliver more stuff. We just need more stuff, right? Whether that’s projects finished or it’s widgets in a factory or whatever it is, that’s resource efficiency versus flow efficiency.

People and Process Flow Efficiency Value Stream Management Value Delivery Lean Principles Systems Thinking Lean Organisational Physics Lean Thinking Complexity Thinking

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