Effectiveness and efficiency in SAFe® - a contradiction?

In the Scaled Agile Framework (SAFe®) the primary focus is on building solutions that deliver value to the customer, also known as effectiveness. In the current economically challenging times, the call for efficiency is quickly becoming louder. Where in the framework are there opportunities to increase efficiency and do these contradict effectiveness?

In an increasingly complex and competitive business world, efficiency is a decisive factor for success. Companies and organizations are realizing that optimizing processes and resources not only saves costs, but also increases employee productivity and satisfaction.
 
Definition of efficiency
Efficiency is often described as the ratio of output to input. In simple terms, this means that a process or measure is efficient if it achieves maximum benefit (result) with minimum effort (use of resources).

Efficiency can be considered in various areas, including:

• Resource utilization: The optimal use of time, money, personnel and materials.
• Process optimization: The improvement of processes to minimize waste and shorten lead times.
• Cost control: The ability to keep costs within acceptable limits while achieving the desired results.

To better understand the different dimensions, it is important to differentiate between the types:

• Technical efficiency: This refers to the optimal use of tools and technologies in development and production.
• Economic efficiency: This focuses on the financial aspects where the return exceeds the cost.
• Organizational efficiency: This comprises the structure and processes of a company that lead to maximum performance.
• Social efficiency: This looks at the effectiveness of measures aimed at promoting the well-being of employees and society.

Efficiency in SAFe®

How can the “efficiency” perspective be mapped to the Scaled Agile Framework (SAFe®)? Especially if the value orientation is the top priority in the framework and effectiveness is also prominently anchored and visualized in the framework.

• Lean Thinking

  The goal of Lean Thinking is to deliver the maximum value (a solution) to the customer in the shortest sustainable lead time from the trigger (the identification of the need or opportunity) to the point at which the customer receives the value. A closer look at the 5 principles of Lean Thinking reveals that they include both effectiveness and efficiency. “Precisely specify value by specific product” and “ Let the customer pull value from the producer” focus more on effectiveness,  „Make value flow without interruptions” and “ Pursue perfection” focus more on efficiency, and „Identify the Value Stream for each product“ focus both.
   
• Agile Manifesto 
  Both aspects are also included in the Agile Manifesto. From the perspective of efficiency, I would like to emphasize principles 10 & 12. "Simplicity--the art of maximizing the amount of work not done--is essential" and "At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly".
  

• Core Values 
  I would like to emphasize “Relentless improvement” in the core values. Similar to lean thinking and the agile manifesto, it isabout continuously improving effectiveness and efficiency. Better products for less money and with happier customers, leading to higher revenues and greater profitability.
   
• SAFe Principles

  In the SAFe® principles, I would like to focus on #1 “Take an economic view” and #6 “Make value flow without interruptions”. In principle #1, the economic framework and the prioritization method WSJF is established. „Understand Solution Economic Trade-Offs“ and WSJF prioritizes the backlog to ensure the highest value is delivered in the shortest lead time; again effectiveness and efficiency. 
  Based on the principles of Lean Thinking, SAFe® Principle #6 establishes the PDCA cycle in the flow accelerators (feedback on building the right thing & feedback on building the right thing) and flow efficiency (the ratio of total time spent on value-adding work activities divided by flow time) in the flow metrics, among others.
   
• Value Stream and ART Identification Workshop & Value Stream Mapping

  The VSAIW aims at the initial identification of a value stream including the people involved that I need to design a solution effectively and efficiently. The aim of value stream mapping is to collect key figures on the individual steps in the value stream in order to identify waiting times, bottlenecks or quality problems and to implement improvement measures. Again, it is about effectiveness and efficiency.
   
• Roles in SAFe®

  A look at the responsibility wheels of the roles Scrum Master/Team Coach, Release Train Engineer and Solution Train Engineer reveals the aspects “Improving/optimizing flow”, “Improving relentlessly” and “Building high performing teams”. The improvement of the “way of working” is anchored in these roles. And here, too, both effectiveness and efficiency can be found as design tasks.
   
• Events in SAFe®

  The team-based Iteration retrospective und the Inspect & Adapt event on ART-Level (and Large Solution level) implement the idea of relentless improvement in the cadence of SAFe. Again, it is about effectiveness and efficiency.
   
• Automation of the CDP
  As mentioned in Built-in Quality one of the Basic Agile Quality Practices is Workflow Automation. Manual steps in the Continuous Delivery Pipeline result in increased lead times and reduced quality, so decreased effectiveness and efficiency. Automation provides substantial gains due to reduced execution costs and intrinsic adherence to standards.
   
• Measure & Grow
  SAFe®’s Measure and Grow approach evaluates business agility through three key domains: outcomes, flow, and competency. Outcomes measure if solutions meet business and customer needs using KPIs, OKRs, and employee engagement metrics. Flow metrics assess delivery efficiency and predictability, including flow distribution, velocity, time, load, efficiency, and predictability. Assessments measure proficiency in SAFe Disciplines and practices.
   
• Attributes of a solution
  Successful products and solutions are:
  • Desirable – Do customers and users want it?
  • Feasible – Can we deliver it through a combination of build, buy, partner, or acquire endeavors?
  • Viable – Is how we build it creating more value than cost?
  • Sustainable – Are we proactively managing it to account for its expected lifecycle?
    
    The “viable” attribute in particular is aimed at efficiency.

Conclusion

Effectiveness and efficiency are both anchored in SAFe® and are not a contradiction in terms. In fact, both aspects are relevant in product development. All the types of efficiency are adressed in the framework: Technical efficiency, Economic efficiency, Organizational efficiency and Social efficiency.

Due to the current economic situation, there is a stronger emphasis on efficiency, but effectiveness has not lost its relevance as a result. Rather, the question is how to balance the two interrelated aspects of effectiveness and efficiency in your product development organization.

Author: Stefan Becker, SPCT-Kandidat, KEGON Management Consultant