in house vs independent external assessment

Answer the question below and respond to the response:

“No one knows the business inside and out better than the incumbent officers of the organization.”

In light of the statement above, what is the justification for conducting environment assessments by the top managers of the business, or for requesting an independent external body to prepare an assessment report? Detail your thoughts. As required for all discussion questions, your response(s) must be referenced and supported with peer-review journals and quality academic materials.

Response 1:

When considering the statement, “No one knows the business inside and out better than the incumbent officers of the organization.” At its face, it would make sense to most to think that that people that run the business would have the most knowledge of its ins and outs. This often results in internal evaluations of process and programs that can be highly beneficial especially when considering the cost effectiveness and control of such processes. However, there is plenty of evidence to suggest that those that have the most invested in an institution or organization, may be the least likely to be able to identify a problem or a potential hazard to the organization. For example, many organizations implement plans and processes to achieve a specific goals. Many of these plans may account for the best info available at the time or the skill level of those involved in the process planning. Because the system in effect may be highly understood by those that created it, they would be the best to understand when deviation occurs or issues with the system. However, over times these process may change to a substantial degree or become less effective due to trends or demand from the industry of which the process owners may be unaware of. A value stream analysis of the internal environment is one of the best ways to identify where value is added and lost to a process. “Value Stream Management is a new strategic and operational approach to the data capture, analysis, planning and implementation of effective change within the core cross-functional or cross-company processes required to achieve a truly lean enterprise”(Hines, 1998) These kinds of assessments can be done internally but significantly benefit from hiring an external evaluator.

One of the best aspects of the external evaluator is the removal of biases in the evaluation. Bias control is extremely important to any evaluation process whether internal or external. The objectivity of personnel not directly involved in a company provide new perspectives on the process and how an organization is achieving them. An added benefit is the potential to ease the minds of investors if the evaluator is reputable. This is also true for perceived objectivity “Free from the post-modern challenge to objectivity, many users of evaluation are looking for an appearance of objectivity—and will be satisfied Many people believe that external evaluators come to an evaluation unbiased and with an open mind in contrast with internal evaluators who are part of an organization with its own history and modes of behavior with an independent evaluation by someone with ‘no obvious stake in the program’ (Weiss 1972, p. 37).

Resources:

Hines, P., Rich, N., Bicheno, J., Brunt, D., Taylor, D., Butterworth, C., & Sullivan, J. (1998). Value stream management. The International Journal of Logistics Management, 9(1), 25-42.

Weiss, CH 1972, Evaluation research: methods for assessing program effectiveness, Prentice Hall, Englewood Cliffs, New Jersey.

 

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