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Practice Guide to Auditing Efficiency


Continuous Improvement and Innovation

Definition

A continuous improvement process is an ongoing effort to improve products, services, or processes. As part of this effort, processes, products, and services are constantly evaluated and improved in light of their efficiency, effectiveness, and flexibility.

Innovation is the application of new solutions to meet new requirements or existing needs.

Knowledge of Business Questions

Potential Audit Criteria

  • Does the organization periodically review its efficiency? If so, how is this done? Is a review of options for reducing waste and removing unnecessary activities conducted?
  • Has the organization identified and assessed the merits of alternative service delivery methods and models as potential means of increasing its efficiency?
  • Has the organization assessed opportunities for efficiencies that could be achieved through better collaborative arrangements (such as pooling of resources, removal of duplication, and implementation of shared services)?
  • Does the organization know what continuous improvement models and frameworks are being used in similar public sector organizations?
  • Improving existing methods of operations—The organization continually assesses the feasibility of streamlining its systems and procedures, optimizing the allocation of its resources, and eliminating duplication and waste.
  • Innovation—The organization periodically identifies and assesses innovative ideas for improving the efficiency of its key activities and services.
  • Service delivery alternatives—The organization periodically assesses the merits of alternative service delivery methods and models that could increase its efficiency.
  • Efficiency through collaboration—The organization periodically assesses the merit and feasibility of increasing efficiency through new or improved collaborative arrangements (such as pooling of resources, removal of duplication, and shared services).
  • Continuous improvement process—The organization has implemented a continuous improvement process to review and improve its service delivery systems and practices.