Machines are efficient, people are inefficient. I generally prefer service by people. I would rather go into the bank to cash a check than use the ATM. I would rather go to a store to buy something than order online. Sure, if the bank is closed or I am in a hurry, I'll use the ATM. If the item is hard to find, I'll order online.
This little blog entry was triggered on listening to a server schmooze at a neighborhood restaurant. Sure, it's more efficient to go to a chain fast food restaurant and be served by human automatons. But I'd rather go to a local restaurant where the staff interacts with the customers. I've found out who has graduated from college, what job a server is moving on to, and lots more about the food than I would at a fast food chain.
Also, a machine does not give you a free beer because food took longer than expected. It is really great when management gives employees latitude to make that kind of decision.
For a variety of reasons I haven't been visiting our favorite liquor store for the last few weeks. My wife suggested I buy a bottle of wine. Lo and behold, one of my favorite clerks had returned after a stint at another job. He is the best schmoozer of all the people at the store; he makes me want to stop more often. He may bring in more money than those who just answer questions and ring up the sale.
Showing posts with label effectivness. Show all posts
Showing posts with label effectivness. Show all posts
Saturday, May 16, 2009
Thursday, January 15, 2009
Beer budget vs. milk budget, advice for politicians
As government revenues shrink, governments are cutting budgets drastically. In one way, this makes a lot of sense. However, in their rush to cut budgets, some politicians are throwing sense out the window. These are those calling for "across the board budget cuts" or "everyone must feel the pain". I don't think they would do the same with their family budgets.
If anyone's income is cut, it is difficult to cut every item in the budget. For example, the mortgage and the real estate taxes must be paid in full. The transportation cost to get to and from work must be borne. However, there is certain "discretionary" spending that cannot be cut and certain which should be cut. For example, a family would not cut the kid's milk budget and Dad's beer and cigarette budget by the same percentage. If anything, Dad should give up beer and cigarettes so that the kids can have all the milk they need and so that the house can be kept sufficiently warm for the kids to do their homework well.
So it is with governments. Do you cut the fire department budget the same percentage as you cut the parks budget? If you cut the fire department budget will you have increased response times? If you increase response times, will the average fire damage be greater. If the average fire damage is greater, won't fire insurance premiums be higher? If fire insurance premiums are higher, won't that be an indirect tax? See "Snow, new taxes"
http://magree.blogspot.com/2009/01/snow-new-taxes.html
That is not to say that there aren't ways to reduce costs in an essential service. For example, is perfectly good equipment being replaced because its scheduled life cycle has been reached? If truck tires are being replaced every two years, maybe they should only be replaced if the tread is too low and the walls show cracking.
Another buzzword in cutting government expenses is efficiency. But efficiency in the short term may be inefficient in the long term. Suppose the fire trucks engines' run most efficiently at 25 mph. If the trucks were to run at 25 mph wouldn't that affect the response times. See above. Conversely, if the trucks engines run most efficiently at 55 mph, should they be driven at that speed? Wouldn't that increase the number of accidents involving fire trucks and thus greatly increase response times?
The buzzword should not be efficiency, but effectiveness. Unfortunately, providing effectiveness takes more work than proclaiming one is seeking efficiency.
If anyone's income is cut, it is difficult to cut every item in the budget. For example, the mortgage and the real estate taxes must be paid in full. The transportation cost to get to and from work must be borne. However, there is certain "discretionary" spending that cannot be cut and certain which should be cut. For example, a family would not cut the kid's milk budget and Dad's beer and cigarette budget by the same percentage. If anything, Dad should give up beer and cigarettes so that the kids can have all the milk they need and so that the house can be kept sufficiently warm for the kids to do their homework well.
So it is with governments. Do you cut the fire department budget the same percentage as you cut the parks budget? If you cut the fire department budget will you have increased response times? If you increase response times, will the average fire damage be greater. If the average fire damage is greater, won't fire insurance premiums be higher? If fire insurance premiums are higher, won't that be an indirect tax? See "Snow, new taxes"
http://magree.blogspot.com/2009/01/snow-new-taxes.html
That is not to say that there aren't ways to reduce costs in an essential service. For example, is perfectly good equipment being replaced because its scheduled life cycle has been reached? If truck tires are being replaced every two years, maybe they should only be replaced if the tread is too low and the walls show cracking.
Another buzzword in cutting government expenses is efficiency. But efficiency in the short term may be inefficient in the long term. Suppose the fire trucks engines' run most efficiently at 25 mph. If the trucks were to run at 25 mph wouldn't that affect the response times. See above. Conversely, if the trucks engines run most efficiently at 55 mph, should they be driven at that speed? Wouldn't that increase the number of accidents involving fire trucks and thus greatly increase response times?
The buzzword should not be efficiency, but effectiveness. Unfortunately, providing effectiveness takes more work than proclaiming one is seeking efficiency.
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